JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
* MSCI Asia ex-Japan turns lower, -0.17%
* China GDP grows 6.0% in third quarter, three-decade low
* Nikkei trims gains, up 0.18%
* Sterling gives back gains after Brexit deal rally
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, Oct 18 (Reuters) - Asian stocks stumbled on Friday
after China posted its weakest growth in nearly three decades,
countering a global lift in sentiment on the UK and European
Union striking a long-awaited Brexit deal.
China's economy grew 6.0% in the third quarter, less than
expected, and the weakest pace in at least 27-1/2 years, as the
Sino-U.S. trade war hit demand at home and abroad. While the downbeat data raises the prospect that Chinese
policymakers could prepare more measures to boost growth,
analysts and market players said Beijing has relatively little
room for significant easing.
"How much traction is monetary policy going to get? If there
is any short-term move (higher) here in Asia it will genuinely
be only short-term players because we're not far from printing 5
(percent) in China GDP, and that's not going to be good for risk
assets," said Greg McKenna, strategist at McKenna Macro.
"It doesn't matter how excited you get about stimulus, it is
not going to be good for risk assets."
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was down 0.17% by 0350 GMT, erasing earlier
small gains. Australian shares .AXJO dropped 0.61% and Chinese
blue-chips .CSI300 were off 0.65%.
The disappointing Chinese data came as Japan's core
inflation slowed to near 2-1/2-year lows in September, raising
expectations that the Bank of Japan could add to its already
massive monetary stimulus. Japan's Nikkei .N225 was last up 0.18%.
Sterling, which had enjoyed its biggest rising streak since
October 1985 and hit a five-month high on the back of the Brexit
deal, gave up ground on Friday morning amid doubts that the
agreement would receive parliamentary approval. The pound eased
0.31% to buy $1.2848. GBP=
"Whatever was agreed last night with the EU still has to go
through the British parliament...the uncertainty surrounding
that still hasn't changed one iota," said James McGlew,
executive director of corporate stockbroking at Argonaut in
Perth, Australia.
Equity markets had enjoyed a bounce on Thursday from the
initial Brexit news, with the S&P 500 .SPX briefly topping
3,000 points for the first time in more than three weeks.
Helping to alleviate immediate trade war worries, China said
on Thursday that it hoped to reach a phased agreement in its
trade dispute with the United States as soon as possible.
Investors were also encouraged by upbeat earnings from
Netflix NFLX.O and Morgan Stanley MS.N , but poor results
from International Business Machines Corp IBM.N and weak U.S.
economic data weighed.
Housing starts, industrial production and mid-Atlantic
factory output all fell short of economist expectations.
The Dow Jones Industrial Average .DJI gained 0.09% to
27,025.88, the S&P 500 .SPX finished up 0.28% at 2,997.97 and
the Nasdaq Composite .IXIC rose 0.4% to 8,156.85.
On Friday, S&P 500 e-mini stock futures ESc1 , were down
0.16% at 2,993.25.
Reflecting the cautious mood, the yield on benchmark 10-year
Treasury notes US10YT=RR fell to 1.7395% compared with a U.S.
close of 1.755% on Thursday.
In the currency market, the safe-haven yen strengthened,
with the dollar falling 0.1% to 108.54, while the euro EUR=
was up 0.04% on the day at $1.1126.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was barely lower at 97.592.
Oil fell, with U.S. crude CLc1 dropping 0.17% to $53.84 a
barrel and Brent crude LCOc1 easing 0.45% to $59.64%.
Spot gold XAU= rose to $1,492.54 per ounce. GOL/
(Editing by Sam Holmes and Jacqueline Wong)