April retail sales and industrial production in China fell short of forecasts, weighing on regional markets amid rising oil prices and bond yields.
China’s April economic data undershot expectations, with retail sales rising just 0.2% year-over-year against a forecast of 2%, while industrial production grew 4.1% versus an expected 5.9%. The weak demand signals added to broader market unease as geopolitical tensions and surging oil prices stoked inflation fears.
Japan’s 10-year bond yield hit a 1996 high, driven by fresh debt plans, while China’s house price index slumped 3.5% in April, worsening from March’s 3.4% decline. The PBOC set the USD/CNY reference rate at 6.8435, above estimates of 6.8086, reflecting currency pressure.
Oil markets tightened further as US inventories neared exhaustion, with analysts warning of no buffer left. US futures opened lower, mirroring cautious sentiment across equities as investors weighed the economic toll of the Iran conflict and weak demand.