Asian shares mixed after China reports slowing growth

BANGKOK (AP) — Shares were mixed in Asia on Monday after China reported that its economy expanded at an 8.1% annual pace in 2021, though growth slowed to half that level in the last quarter.

Tokyo, Shanghai and Sydney rose, while Hong Kong and Seoul declined.

The weakness in China's economy toward the end of 2021 is prompting suggestions Beijing should intervene to prop up growth with interest rate cuts or by injecting money into the economy through public works spending.

Shortly before the growth data were released, the Chinese central bank announced a rate cut on medium-lending to commercial banks to the lowest level since 2020.

“Economic momentum remains weak amid repeated virus outbreaks and a struggling property sector," Julian Evans-Pritchard of Capital Economics said in a commentary. He expects China's policymakers to keep limits on lending relatively tight and control credit growth.

“The upshot is that policy easing is likely to soften the economic downturn rather than drive a rebound," he said.

Slowing activity in China, the region's biggest economy, can chill growth throughout the region. Lockdowns and other precautions imposed to combat outbreaks of coronavirus can also worsen shortages of key parts and components, adding to difficulties with shipping and supply chains.

The Shanghai Composite index gained 0.6% to 3,542.74, while Hong Kong's Hang Seng dropped 0.7% to 24,2207.75.

South Korea's Kospi sank 1.1% to 2,890.10 after North Korea fired two suspected ballistic missiles into the sea early Monday in its fourth weapons launch this month, South Korea’s military said, with the apparent goal of demonstrating its military might amid paused diplomacy with the United States and pandemic border closures.

In Tokyo, the Nikkei 225 advanced 0.7% to 28,333.52 as...