Investing.com - Asian stock markets retreated on Thursday, weighing on market sentiment, as weak economic data from China and Japan raised concerns over the health of Asia's two biggest economies.
1. Nikkei pulls back 2.5%, one day after soaring 7.7%
Japan's blue-chip Nikkei 225 fell 2.5% after a key gauge of capital spending fell unexpectedly in July, fueling concerns over the health of the economy.
Core machinery orders fell 3.6% in July, missing expectations for a 3.7% increase.
The Nikkei soared 7.7% on Wednesday, the biggest one-day gain since October 2008, after Prime Minister Shinzo Abe reiterated a pledge to lower the corporate tax rate.
2. Chinese stocks fall amid deflation fears
The Shanghai Composite dropped 1.5% after data showed that producer prices fell at the fastest rate in six years in August.
Government data showed that Chinese producer prices fell by a more-than-expected 5.9% in August, the 42nd straight monthly decline and the worst reading since October 2009.
Consumer prices rose 2.0% last month, above expectations for 1.8% and up from 1.6% in July. Non-food inflation remained subdued at 1.1%, unchanged from a month earlier.
3. European markets slump amid global growth concerns
European stock markets declined on Thursday, tracking losses in Asia, as appetite for riskier assets weakened amid worries over sluggish global growth.
Germany's DAX, France’s CAC 40 and London's FTSE 100 were all down between 0.5% and 1% in afternoon trade.
4. Dow futures rise 150 points as Wall St. looks set to recover
U.S. stock futures pointed to strong gains at the open on Thursday, as markets attempt to recover from sharp losses the previous session.
During early morning hours in New York, the blue-chip Dow futures rallied 150 points, or 0.93%, the S&P 500 futures jumped 20 points, or 0.99%, while the Nasdaq 100 futures rose 42 points, or 0.98%.
On Wednesday, the Dow lost 240 points, led by declines in shares of Apple (NASDAQ:AAPL) and energy companies, which fell along with oil prices.
On the data front, the U.S. is to release data on initial jobless claims and import prices at 8:30AM ET, followed by a report on wholesale inventories at 10:00AM.
5. Bank of England Super Thursday
The Bank of England will release its rate decision and minutes of its Monetary Policy Committee meeting at 12:00PM London time, or 7:00AM ET.
Last month, the Monetary Policy Committee voted 8-1 to keep rates on hold at a record low 0.5%. Most market players expect the BOE to begin slowly raising interest rates in mid-2016.