Asian Markets React To China's 5% Economic Growth Report

People stand in front of an electronic stock board showing Japan's Nikkei index at a securities firm Friday, Jan. 17, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)

Shares in Asia were mostly lower on Friday following China's report of a 5% annual economic growth rate for the previous year, meeting the government's target but showing a slowdown from the year before. Despite this, U.S. futures saw a slight increase, and oil prices also rose.

China's strong exports and efforts to boost consumer spending and investment led to a nearly 6% surge in manufacturing. The Chinese government's announcement of 5% annual growth was in line with its target for 2024, with the economy expanding by 5.4% in the last quarter of the year.

Economists are predicting further deceleration in growth, especially with potential challenges from U.S. President-elect Donald Trump's threats to raise tariffs on Chinese goods. This adds to Beijing's concerns amid efforts by the U.S. to restrict access to advanced technology.

Economists predict further growth deceleration due to potential challenges.

China reports 5% annual economic growth, meeting government target.

Chinese exports and investment efforts lead to nearly 6% manufacturing surge.

Market reactions in China subdued, with mixed movements in Asia and the U.S.

Taiwan's Taiex index rises following Taiwan Semiconductor Manufacturing Corp.'s profit increase.

Market reactions in China were subdued, with the Hang Seng index in Hong Kong and the Shanghai Composite index both edging slightly higher. However, the Nikkei 225 index in Tokyo dropped by 1%, with shares of gaming company Nintendo falling 4.3% despite announcing the upcoming release of the Switch 2 console in April.

In South Korea, the Kospi declined by 0.2%, while Australia's S&P/ASX 200 also saw a 0.2% decrease. Taiwan's Taiex index rose by 0.5% following Taiwan Semiconductor Manufacturing Corp.'s report of a 57% profit increase in the last quarter, driven by the artificial intelligence sector.

Meanwhile, U.S. benchmark crude oil prices climbed to $78.14 per barrel, and the dollar strengthened against the Japanese yen. In the U.S., stock indexes experienced minor declines on Thursday, with the S&P 500 slipping by 0.2% and the Dow Jones Industrial Average dropping by 0.2%.

Despite some positive earnings reports, including from UnitedHealth Group, the market sentiment was mixed. Tesla's stock fell by 3.4% after announcing discounts on its Cybertruck model, indicating a slowdown in electric vehicle sales. The Nasdaq composite also fell by 0.9%.

Overall, the market movements reflected ongoing uncertainties about economic growth and interest rate policies, with traders closely monitoring various economic indicators to gauge the future direction of financial markets.