JGB yields bruised by weak Chinese economic data; Nikkei 225 down nearly over 2 pct at close

The Japanese government bond yields were bruised by weakness in the Chinese economic data, released early today, as investors’ sentiments were hurt, with the benchmark Nikkei 225 down over 2 percent at the time of closing on the last trading day of the week.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, plunged to its lowest since July this year to 0.040 percent, the yield on the long-term 30-year note also suffered to 0.80 percent and the yield on short-term 2-year lost 15 basis points to -0.150 percent by 05:40GMT.

According to a report from Reuters, China’s November retail sales grew at their weakest pace since 2003 and industrial output rose the least in nearly three years as the economy lost further momentum, heaping pressure on Beijing to defuse its trade dispute with the United States.

Official data released by China showed that the country’s retail sales rose 8.1 percent in November from a year earlier, data from the National Bureau of Statistics showed on Friday, below expectations for an 8.8 percent rise and the slowest since May 2003. In October, sales increased 8.6 percent.

Auto sales fell a sharp 10.0 percent from a year earlier, in line with industry data showing sales dived 14 percent in November - the steepest drop in nearly seven years.

Industrial output rose 5.4 percent year-on-year in November, missing analysts’ estimates and matching the pace seen in January-February 2016. Factory output had been expected to grow 5.9 percent, unchanged from October’s pace.

Meanwhile, the Nikkei 225 index closed 2.02 percent lower at 21,374.80 by 05:45GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -74.27 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex