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Asian shares plunge, China's GDP progress falls in need of expectations

© Reuters.

From Gina Lee

Investing.com – Asia Pacific stocks were largely lower on Monday morning as energy prices continue to skyrocket, adding to concerns about inflationary pressures.

China's value was down 0.66% and down 1.10% by 10:31 p.m. ET (2:31 p.m. GMT). said GDP grew 0.2% and 4.9% less than expected in the third quarter of 2021.

grew by 3.1% year-on-year, in September by 4.4% year-on-year and stood at 4.9%.

Hong Kong is down 0.85%.

Japan lost 0.30% and South Korea lost 0.10%.

In Australia the value rose by 0.28%.

With China's data being closely monitored to gauge the severity of a global energy crisis in the country, People's Bank Governor Yi Gang Yi said on Sunday that the Chinese economy is "doing well" but facing challenges such as the risk of default certain companies face is because of "mismanagement".

However, the risks to the Chinese economy and financial system from China Evergrande Group's debt problems can be contained, he added.

In New Zealand, the consumer price index rose 4.9% and 2.2% higher than expected in the third quarter.

Despite rising risk appetite, concerns about inflation continue to weigh on investor sentiment amid an ongoing global energy crisis and uneven economic recovery from COVID-19. It does this as major central banks prepare to start reducing assets.

“The mood really got pretty bearish. Markets are feeling reasonably encouraged by the fact that we are likely to see reasonably robust results from US companies this quarter. ”IG Group market analyst Kyle Rodda told Bloomberg.

"But the longer-term problem remains what happens to the global supply shock caused by COVID-19, the resulting inflationary pressures and the very fine line the US Federal Reserve is taking to contain them." Inflation risks without slowing the recovery or undermine the strength of the financial markets. "

Fed Chairman Jerome Powell will take part in a political panel discussion on Friday. Bank of England Governor Andrew Bailey said the central bank will "have to act" to contain inflationary pressures, warning that higher energy costs will keep price pressures going.

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