- Asian stocks dipped on Wednesday as investors absorbed Chinese consumer and producer price data that showed both metrics contracting at the same time for the first time since 2020.
- Japan's stock market dropped after benchmarks in mainland China and Hong Kong opened lower. South Korean markets gained, while Australian equities remained relatively flat.
- Consumer prices in China fell 0.3% year on year in July, less than the 0.4% loss predicted by economists. Producer prices declined 4.4%, which was higher than expected. The Chinese currency gained ground, helped in part by a stronger-than-expected yuan fixing.
- Chinese shares fell after a 2.4% decline in a gauge of US-listed Chinese stocks on Tuesday due to a larger-than-expected reduction in transactions. Country Garden, previously China's largest developer, is having problems, with its shares plunging as high as 8.9% in early trading.
- In Asia, US equity futures edged higher after markets pared losses on Tuesday, as dip buyers emerged following a drop fueled by concerns about the financial system and the economy.
- Treasury rates fell across the curve on Tuesday, continuing a rise that was aided by a well-received 3-yr note auction. 10-yr bond yields in Australia and New Zealand have also fallen by about 4 bps. The dollar stayed steady after reaching its highest level in over a month earlier in the session, fueled by concerns over everything from China's outlook to the health of US and Italian banks.
