Stock Markets in Asia Rise, with Primary Focus on Ukraine Negotiations
China's Economy Slows Down in July 2025
In a notable turn of events, China's economy showed signs of slowing in July 2025, as multiple key economic indicators recorded slower growth compared to previous months.
The industrial output rose 5.7% year-on-year, marking the weakest growth since November 2024 and a significant drop from the 6.8% recorded in June. Retail sales growth also slowed, underperforming analyst expectations and declining from 4.8% in June to 3.7% year-on-year. Fixed-asset investment growth also slowed, increasing only 1.6% year-on-year through July, missing market forecasts and reflecting weakness in sectors with excess capacity and an ongoing housing slump. The property sector remained in contraction, with home prices falling across most cities, adding downward pressure on consumer confidence.
The economic slowdown is attributed to factors such as high temperatures, heavy rains, anti-involution policies curbing investment, austerity measures, and persistent weakness in the housing market. Analysts expect a more challenging second half of 2025, with increased likelihood of further government stimulus to support the economy.
Regarding the stock market, the broad-based economic slowdown and negative signals from property and investment sectors typically exert downward pressure on investor sentiment and stock markets. However, specific market data for July was not found in the sources, implying that economic weakness and policy uncertainty may have caused volatility or declines in the Chinese stock market during this period.
Elsewhere in the global markets, Asian stocks ended mostly higher on Friday, with Japan's Nikkei 225 Index jumping 1.7 percent in Japan and China's Shanghai Composite Index advancing 0.8 percent. Australian markets rose notably to close at a record high, while New Zealand's benchmark S&P/NZX-50 Index rose 0.4 percent to 12,889.38, extending gains for a third straight session. Seoul stocks ended on a flat note ahead of the U.S.-Russia summit on Ukraine.
In the United States, U.S. producer prices rose 3.3 percent on an annual basis, the most since February, and "core" producer prices, which exclude food, energy, and trade services, saw the largest increase in three years. Retail sales growth in China slowed sharply in July, and the dollar failed to sustain its recovery from the previous session. Gold ticked higher in Asian trading.
In other positive news, lithium miner Liontown Resources added 5.6 percent, and energy firm Ampol jumped 7.7 percent to its highest close since February 3. The central bank of China announced it would conduct 500 billion yuan of outright reverse repos, and Hong Kong's Hang Seng Index slid 1.0 percent. Manufacturing activity in New Zealand expanded in July, according to a survey.
In summary, July 2025 economic data show a deceleration in industrial output, retail sales, and fixed-asset investment in China. The property sector struggles continued with falling home prices, dampening consumer confidence. The economic slowdown likely negatively affected the stock market, though explicit market data for July was not found in the sources. Experts highlight the need for further stimulus to support growth in the second half of 2025.
Sports enthusiasts might find solace amidst China's economic slowdown in July 2025, as the country's sports sector remained untouched by the overall weakness, continuing to attract investments and participation from both within and outside the country. Additionally, with Asia's stock markets showing signs of growth, foreign investment could potentially flow into the sports sector, providing a much-needed boost for the industry.
