Asia stocks muted as China growth revives US rate hike talk

BEIJING (AP) — Asian stock markets were muted Tuesday after China's better-than-expected quarterly growth figure revived expectations for a Federal Reserve rate hike.

Investors had been expecting a lower number, and some forecasts were particularly pessimistic, so the outcome was a positive for the global economic outlook.

Investors were convinced the Federal Reserve held off raising interest rates in September because it was uncertain about how much global economic growth, and China's growth in particular, was weakening.

[...] the fact Chinese growth didn't collapse in the third quarter removes one argument in financial markets for interest rates to be left at record lows.

QUOTABLE: "Overnight market action was dominated by a response to Chinese GDP, retail sales and industrial production numbers," said Michael McCarthy, chief strategist at CMC in Sydney.

A slide in oil prices hammered energy stocks and Morgan Stanley and Hasbro declined after earnings failed to meet investor expectations.