Asian Markets Mixed After China’s Disappointing Growth Target
Stock markets in the Asian region showed a mixed picture on Friday. A disappointing growth target for the Chinese economy in 2021 weighed on sentiment.
Investors also processed the lower closing stocks on Wall Street, where the technology gauge Nasdaq saw the annual profit evaporate. Furthermore, the markets were awaiting the critical US jobs report to be released later today.
The stock market indicator in Shanghai and the Hang Seng index in Hong Kong was slightly higher in the meantime. Chinese Prime Minister Li Keqiang stated at the opening of the annual Chinese National People’s Congress in Beijing that the country aims for more than 6 percent by 2021.
However, analysts had expected growth of more than 8 percent. China was the only economic superpower to grow in the corona year 2020.
The Chinese technology companies showed a mixed picture, despite the price losses among American peers. According to Prime Minister Li Keqiang, China will increase spending on research and development (R&D) by more than 7 percent per year over the next five years. The investments should ensure that China becomes less dependent on foreign technology in terms of technology.
Many Chinese tech companies have been blacklisted by Washington because of too close ties to the Chinese military. American concerns are, therefore, not allowed to do business with these companies.