Chinese Growth Rate Slump Hits HK, Shanghai

Shares in Hong Kong and Shanghai sank on Friday after data showed China's economy growing at its slowest pace for almost 30 years.

The Hang Seng Index fell 0.5 percent, to 26,719.

On the mainland, the Shanghai Composite Index fell 1.3 percent, to 2,938 while the Shenzhen Composite Index dropped 1.2 percent, to 1,616.

Stephen Innes at AxiTrader said traders were concerned the figures were not weak enough to prompt the Chinese central bank to embark on a big stimulus drive.

"With the People's Bank of China, who arguably have plenty of policy ammunition to right the ship, probably unwilling to turn on the monetary taps, investors are taking risk off the table," he said in a note.

Most Asian equity markets ended lower after China said its economy expanded 6 percent in the third quarter.

Sydney closed down 0.5 percent and Singapore eased 0.4 percent.

Seoul shed 0.8 percent and Wellington lost 0.7 percent, with Taipei and Manila also lower. But Tokyo closed 0.2 higher at a 10-month high, while Mumbai and Jakarta also edged up.

Pound continued to be volatile as forex traders pushed it back down below US$1.29, and it extended losses in Asia. But in Hong Kong, it managed to cling on to some of the gains made on Thursday and was trading at HK$10.11. (AFP)