Asian shares slip as China says economy slowed further

BANGKOK (AP) — Asian shares were mostly lower Tuesday after China reported its economy expanded at a 3% pace last year, less than half 2021′s rate.

Tokyo advanced while most other regional markets declined. Investors are watching to see if Japan’s central bank will alter its longstanding policy of keeping its key interest rate at minus 0.1% when it wraps up a policy meeting on Wednesday.

U.S. futures fell after markets on Wall Street were closed Monday for a holiday, while oil prices were mixed.

The Chinese economy is gradually reviving after antivirus controls and a real estate slump dragged on growth last year. Restrictions that kept millions of people at home have been lifted, but a surge in COVID-19 infections is keeping consumers cautious about travel, shopping and dining out. Data reported Tuesday showed growth of the world’s second largest economy slid to 2.9% over a year earlier in December from the previous months 3.9%.

The government has begun to soften a crackdown on technology industries and to roll out more support for private businesses and the property sector, seeking to spur a recovery.

“The good news is that there are now signs of stabilization, as policy support doled out towards the end of 2022 is showing up in the relative resilience of infrastructure investment and credit growth," Louise Loo of Oxford Economics said in a research note.

U.S. Treasury Secretary Janet Yellen was set to meet with her Chinese counterpart in Switzerland on Wednesday. Yellen and Chinese Vice Premier Liu He plan to discuss economic developments between the U.S. and China at a time of persisting tensions over trade and technology.

Hong Kong's Hang Seng index lost 1% to 21,528.84 and the Shanghai Composite index edged 0.3% lower to 3,219.68. In Seoul, the Kospi declined...