Asian markets trade negatively except for India: Recession fears in China

Asian stock markets began the day with a selling-heavy trend, with the exception of India.

Global markets are following a negative trend as data released in the United States fuels concerns about an economic slowdown, while eyes turn to inflation data to be released in the U.S. in the new week.

While selling pressure was observed to be effective on the first trading day of the week in Asia, data released in the region continues to remain the focus of investors.

Accordingly, the Consumer Price Index (CPI) for August in China rose by 0.6 percent, increasing less than expected, while the Producer Price Index (PPI) fell by 1.8 percent, remaining below forecasts.

Analysts stated that while the increase in consumer prices in the country has hovered near zero for 17 months, producer prices have been declining for 23 months.

While this situation has caused recession fears in China to strengthen once again, the fear that the Chinese government may be late in taking the necessary steps to support the economy is deepening the selling pressure.

In Japan, the second-quarter Gross Domestic Product (GDP) rose by 0.7 percent on a quarterly basis and 2.9 percent on an annual basis, both below expectations, while the current account balance for July came in at 3 trillion 193 billion yen, exceeding forecasts.

The dollar/yen parity, which has followed a downward trend over the last four trading days, has shifted to an upward trend on the first trading day of the week and is currently trading at 143.1, approximately 0.4 above the previous close.

Stating that this trend has compensated for losses in equity markets, albeit to a limited extent, analysts noted that market expectations regarding the Bank of Japan's (BoJ) tightening steps remain strong.

With these developments, the Nikkei 225 index in Japan closed down 0.7 percent at 36,159 points.

In South Korea, the Kospi index is at 2,534 points with a 0.4 percent decrease, the Shanghai composite index in China is at 2,733 points with a 1.2 percent loss, and the Hang Seng index in Hong Kong is at 17,088 points with a 2 percent decline.

The Sensex index in India, on the other hand, is trading at 81,301 points with a 0.1 percent increase.