GLOBAL MARKETS-Asia dips as commodities drop on China woes, euro sags

Mon Oct 19, 2015 7:56pm EDT
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* MSCI Asia-Pacific index dips 0.3 percent in early trade

* Commodities like copper, crude slide on China growth woes

* Euro/dollar struggles near 10-day low with ECB in focus

By Shinichi Saoshiro

TOKYO, Oct 20 (Reuters) - Asian equities dipped early on Tuesday after commodity prices slid in wake of China growth woes and dampened risk sentiment, while the euro hovered near a 10-day low ahead of a European Central Bank meeting that could open the door for more monetary easing.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.3 percent. Australian stocks lost 0.2 percent as worries about China weighed on mining and energy stocks following Monday's China GDP data.

"The official GDP figures (released on Monday) show growth slowed to 6.9% y/y in Q3, down from 7.0% y/y in both Q1 and Q2. Unfortunately, these figures need to be taken with a pinch of salt," economists at Capita Economics wrote.

"Flaws with how the GDP deflator is calculated, along with political pressure to meet growth targets that have become increasingly at risk, have meant that official growth rates have not slowed as quickly as most third party measures of growth in recent years."

Three-month copper on the London Metal Exchange was 1.5 percent down at $5,206 a tonne, while Brent crude oil sank 3 percent overnight as the China GDP added to concerns towards the world's second large economy.   Continued...