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Asian stock markets : https://tmsnrt.rs/2zpUAr4

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Soft start with Japan on holiday, US stock futures dip

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China GDP up 0.8% q/q, monthly data mixed

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Packed earnings diary includes Tesla, more banks

By Wayne Cole

SYDNEY, July 17 (Reuters) - Asian shares slipped on Monday as a mixed bag of Chinese economic data were not as bad as some feared, but still fanned market impatience with the lack of major fiscal stimulus from Beijing.

China reported economic growth of 0.8% in the second quarter, above the 0.5% forecasted, while the annual pace slowed more than expected to 6.3%.

Industrial output topped forecasts with a rise of 4.4%, while retail sales missed by a tick at 3.1%. That followed figures out over the weekend showed China's new home prices were unchanged in June, the weakest result this year. "The data suggests that China's post-COVID boom is clearly over. The higher-frequency indicators are up from May's numbers, but still paint a picture of a bleak and faltering recovery and at the same time youth unemployment is hitting record highs," said CBA economist Carol Kong.

"Markets have already adjusted lower their expectations (for stimulus), and our base case is that there won't be a substantial package."

Chinese blue chips were down 1.0%, while the yuan was a fraction lower. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.2%, though that follows a 5.6% rally last week.

Japan's Nikkei was closed for a holiday, though futures were trading 0.3% lower.

EUROSTOXX 50 futures and FTSE futures both slipped 0.5%. S&P 500 futures and Nasdaq futures were both off 0.1%, but that followed hefty gains last week.

Tesla is the first of the big tech names to report this week, while a busy earnings schedule includes Bank of America, Morgan Stanley, Goldman Sachs and Netflix.

Data on U.S. retail sales are expected to show a rise of 0.3% ex-autos, continuing the slower trend but solid enough to fit into the market's favoured soft-landing theme.

"We continue to look for a modest contraction to take hold toward the end of the year, but the path to a non-recessionary disinflation is starting to look more plausible," said Michael Feroli, an economist at JPMorgan.

"We expect Fed officials cheered the latest inflation developments, but declaring victory with sub-4% unemployment, and over 4% core inflation, would be reckless."

PRICED FOR 2024 POLICY EASING

As a result, markets still imply around a 96% chance of the Fed hiking to 5.25-5.5% this month, but only around a 25% probability of yet a further rise by November.