SHANGHAI (Reuters) – Asian stocks stumbled on Friday, erasing earlier gains after China posted its weakest growth in nearly three decades, countering a global lift in sentiment on the UK and European Union striking a long-awaited Brexit deal.
While the downbeat data raises the prospect that Chinese policymakers could prepare more measures to boost growth, analysts and market players said Beijing has relatively little room for significant easing.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.3% by around 0612 GMT, erasing earlier small gains. Australian shares dropped 0.52% and Chinese blue-chips .CSI300 were off 1.53%. Japan’s Nikkei .N225 ended 0.18% higher.
Helping to alleviate immediate trade war worries, China said on Thursday that it hoped to reach a phased agreement in its trade dispute with the United States as soon as possible.