Asian markets slide on growth fears, US stocks end…

Asian markets slide on growth fears, US stocks end volatile day lower

Shanghai reported its first Covid-19 deaths since the start of a weeks-long lockdown. ©AFP

New York (AFP) - Asian stocks closed lower on Monday as Chinese officials offered a cautious outlook despite better-than-expected growth data, while US stocks edged lower amid worries over higher interest rates.

On a day when bourses in Europe and some Asian cities were closed for holiday, Tokyo's benchmark Nikkei 225 ended down more than one percent and Shanghai posted small losses.

China's economic growth accelerated in the first quarter of the year to 4.8 percent, official data showed, but the government warned of "significant challenges" ahead while massive Covid-19 lockdowns started to bite.

Virus restrictions in March have already gouged at retail sales, as consumers shied away from shopping, and drove up unemployment.

"With the domestic and international environment becoming increasingly complicated and uncertain, economic development is facing significant difficulties and challenges," NBS spokesman Fu Linghui said on Monday.

Jeffrey Halley, senior market analyst with OANDA, said the data "suggest that China started the year well, but as the quarter has moved on, the headwinds have gotten stronger."

Shanghai reported its first Covid-19 deaths since the start of its weeks-long lockdown.

China's largest city and economic powerhouse has stewed under a patchwork of restrictions this year amid the country's worst Covid-19 outbreak since the start of the pandemic.

Back in the United States, Wall Street stocks gyrated in a roller-coaster session, with the S&P 500 finishing down less than 0.1 percent.

The yield on the 10-year US Treasury note rose further above 2.8 percent, its latest jump in the upward march seen over the last month as the Federal Reserve has coalesced around an aggressive plan to counter inflation.

Meanwhile, survey data pointed to a decline in US homebuilding sentiment, reflecting the drag from higher mortgage rates, according to the National Association of Home Builders.

Oil prices pushed higher as Libya's National Oil Corporation announced the closure of operations in major sites after staff in the key export terminal of Zueitina and the Al-Sharara oil field were blocked from working.

The Japanese yen, meanwhile, skidded to a fresh 20-year low against the dollar reflecting the continued accommodation of Japanese monetary policy, while US policy makers move to hike interest rates.