In Asia, stocks fell after China reported that its economy grew at an annual rate of 4.9% in July-September, down from 6.3% in the previous quarter.
US futures also fell, while oil prices jumped $2.
China’s National Bureau of Statistics said the world’s second-largest economy slowed in the summer as global demand for exports faltered and the ailing property sector sank deeper into crisis.
The Chinese government has taken a number of steps to support the economy, including boosting spending on ports and other infrastructure, cutting interest rates and easing curbs on home purchases. But economists say broader reforms are needed to address longer-term problems, such as a rapidly ageing population and falling productivity, that are holding back growth.
Weak global demand and the property industry remain the biggest shadows hanging over the economy in the near term, economists said.
“The broader housing data remained weak, although green shoots are appearing,” Capital Economics said in a report. “New housing starts continued to fall and are now at their lowest level since 2005,” it said.
Hong Kong’s Hang Seng lost 0.1% to 17,755.25 and the Shanghai Composite Index fell 0.6% to 3,064.76.
Tokyo’s Nikkei 225 was also down 0.1% at 32,003.18. South Korea’s Kospi added less than 0.1% to 2,461.78 and Australia’s S&P/ASX 200 was up less than 3 points at 7,060.50.
Bangkok’s SET was up 0.5% and India’s Sensex was down less than 0.1%.
On Tuesday, the S&P 500 was down less than 1 point at 4,373.20. The Dow Jones Industrial Average added less than 0.1% to 33,997.65 and the Nasdaq Composite fell 0.3% to 13,533.75.
A report on Tuesday showed that shoppers spent more at US retailers last month than economists had expected. But a too-hot economy could also fuel inflation, prompting the Fed to keep interest rates high in an attempt to smother it. Such a move would hurt the price of stocks and other investments.
Treasury yields rose in the bond market. The yield on the 10-year Treasury rose to 4.83% from 4.69% late on Monday.
A sharp rise in the 10-year yield since the summer has weighed on the stock market as traders increasingly accept the Fed’s forecasts that it is likely to keep interest rates high for a long time. The central bank has already raised its key interest rate to its highest level since 2001 and is debating whether to raise it again.
Nvidia and other chipmakers came under extra pressure after the US government expanded restrictions to prevent China from buying advanced computer chips and the equipment to make them. Nvidia fell 4.7%.
Meanwhile, several major US companies rose after their latest earnings reports.
Bank of America helped lead the market with a 2.3% gain after beating Wall Street’s profit forecasts for the third quarter.
Bank of New York Mellon rose 3.8% after also reporting better-than-expected earnings for the latest quarter.
Companies across the S&P 500 index are widely expected to report earnings growth over the summer for the first time in a year.
Wyndham Hotels & Resorts rose 9% after rival Choice Hotels International said it wanted to buy the company for $90 a share in cash and stock, valuing it at $7.8 billion.
Wyndham said it rejected the offer as “underwhelming”. Choice shares fell 6.8%.
Crude oil prices rose on Wednesday on renewed concerns that a war in the Middle East could lead to supply disruptions if it engages Iran or other major oil-producing countries.
A barrel of US crude for November delivery rose $2.15 to $88.81 a barrel in electronic trading on the New York Mercantile Exchange. It was flat on Tuesday after fluctuating between gains and losses throughout the day. Brent crude, the international standard, rose $1.98 to $91.88 a barrel.
In currency trading, the dollar slipped to 149.67 Japanese yen from 149.82 yen. The euro rose to $1.0579 from $1.0576.
