China: U.S. might steal Christmas
Asian markets shook after yesterday's Wall Street decline, adding to China's fear that a weak U.S. economy means less Holiday work. Scott Tong explores the impact of the U.S. consumer on the Chinese market.
An investor looks over the board at the stock exchange in Shanghai. (Mark Ralston/AFP/Getty Images)
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Lisa Napoli: Wall Street's triple-digit decline Thursday walloped Asia today. Markets in Hong Kong and Taiwan sank 3 percent -- a 2 percent decline for the markets in Japan, South Korea and Singapore. Same deal with China, where Scott Tong looks at what happened.
Scott Tong: Here's the fear in China: That a weakening American economy means fewer work this holiday season for Santa Claus and his Chinese elves.
William Hess: The main link between the Chinese economy and the U.S. economy is still the U.S. consumer.
William Hess in Beijing is with the forecasting firm Global Insight:
Hess: The recently relatively weak consumer data would indicate that maybe in the medium term that imports from China may slow down. And certainly exports have been driving a lot of Chinese growth.
But market trepidation out here also reflects the alternative economic universe that is China -- that it's running too hot. GDP is growing at 11.5 percent, and stocks have doubled this year.
Beijing wants to cool it all down with interest-rate hikes. That would also address the growing whispers of inflation. The cost of fuel, wages and food are all up. Not a good time for the American Christmas orders to go down.
In Shanghai, I'm Scott Tong for Marketplace.
