Asian markets slide after Chinese house prices disappoint

Guy Bentley
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Asian markets have suffered declines as weak housing data from China renewed fears that the slowdown in the world's second largest economy could be getting worse.

House prices for new homes rose in 44 of 70 cities surveyed last month, compared with 56 cities is March. The People's Bank of China has instructed financial institutions to reduce interbank lending in attempt to the curb the country's shadow banking system.

After a series of anti-Chinese riots in Vietnam which lead to the deaths of two people last week, Beijing has made planes and boats available to evacuate Chinese citizens. Over 3,000 Chinese nationals have been evacuated since 17 May.

In Ukraine fighting continued between government forces and pro-Russian separatists who have declared and independent state in the east of the country. Ukrainian forces killed one rebel but lost a police station less than a week before the presidential election.

Japanese shares slipped despite data revealing machinery orders rocketed an annual 16.1 per cent in March, far exceeding estimates 4.2 per cent.