China stocks extend losses on disappointing economic recovery

** Other Asian shares were subdued and the dollar hovered around a five-week peak as investors remained risk-averse, with the U.S. debt ceiling talks and a mixed set of economic data weighing on sentiment. ** China's April industrial output and retail sales growth undershot forecasts, suggesting the economy lost momentum at the beginning of the second quarter and intensifying pressure on policymakers to shore up a wobbly post-COVID recovery.

China stocks slipped on Wednesday, extending losses from the previous session following disappointing economic data for April, prompting some economists to downgrade the country's growth forecasts. ** China's blue-chip CSI300 Index lost 0.4% by the midday recess, while the Shanghai Composite Index edged down 0.2%.

** Hong Kong's benchmark Hang Seng Index declined 0.6%, while the China Enterprises Index dropped 0.4%. ** Other Asian shares were subdued and the dollar hovered around a five-week peak as investors remained risk-averse, with the U.S. debt ceiling talks and a mixed set of economic data weighing on sentiment.

** China's April industrial output and retail sales growth undershot forecasts, suggesting the economy lost momentum at the beginning of the second quarter and intensifying pressure on policymakers to shore up a wobbly post-COVID recovery. ** Barclays economists cut China's 2023 GDP forecast to 5.3% from 5.6% previously on "concerns around the sustainability of the recovery in housing and consumption".

** "Beijing may have to introduce a new round of supportive measures in the second half of the year, including cutting benchmark lending rates to bolster growth," said Ting Lu, chief China economist at Nomura. ** Insurance stocks declined 2.6%, while non-ferrous metal and liquor shares retreated 0.8%, respectively.

** At the other end, aerospace defence companies advanced 2.2% and communications equipment stocks added 1.1%. ** Most sectors in Hong Kong fell, though Alibaba Group Holding Ltd and Baidu Inc rose 1.4% and 1.5%, respectively.

** Search engine giant Baidu beat first-quarter revenue and profit estimates on Tuesday as businesses spent more on advertising amid China's post-COVID reopening. ** Alibaba is expected to report a rise in quarterly revenue when it reports results on Thursday.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)