Asian stocks were off to a bleak start on Thursday, as economic data from Japan weighed heavily on investors.

Japan’s Nikkei closed down 2.5 percent at 18,299.62, after surging nearly 8 percent on Wednesday morning.

Core machinery orders, Japan’s most important gauge of capital expenditure, fell for the second month in a row in July, down 3.6 percent. This is a further indication that Japan’s economy may not recover as quickly as expected after a disappointing second quarter.

In China, the benchmark Shanghai Composite was down 1.1% to 3,206.69, while Hong Kong’s Hang Seng was down 2.2% to 21,639.29 points.

Figures released on Thursday showed China’s consumer price index (CPI) unexpectedly rose to 2% in August from a year ago marking a one-year high.

However the rise was mainly due to higher pork prices, rather than economic growth; pork is a big contributor to consumer prices in China and rose from 16.7 percent last year to 19.6 percent in August.


Previous articleStruggling supermarket Morrisons sees 35 percent profit drop
Next articleHouse prices rise nearly 9% in three months to August