Weekly News Wrap: Shopping buoys Australian economy; Pinduoduo shares surge 43% amid reduced consumer appetite

And Shopee pulls out of Argentina in a wave of Latin America exit.

From Reuters:

Australia's economy picked up speed in the June quarter as consumers kept spending and energy exports boomed, offering hope activity can weather sharply higher interest rates and cost-of-living pressures.

Data from the Australian Bureau of Statistics showed gross domestic product rose 0.9% in the second quarter, in line with forecasts and up on the first quarter's 0.7% rise.

Annual growth accelerated to 3.6% as the lowest unemployment rate in almost five decades underpinned household incomes and spending.

Indeed, so resilient was the economy that the Reserve Bank of Australia (RBA) has had to embark on an uber-aggressive tightening campaign to try and cool activity and restrain runaway inflation.

The central bank on Tuesday raised its cash rate 50 basis points to a seven-year high of 2.35%, bringing the total tightening since May to an eye-watering 225 basis points.

From Reuters:

As Chinese consumers curb their spending in a pandemic-stricken economy, one discount e-commerce firm is emerging as a clear stock-market winner.

Shares of Pinduoduo, which sells everything from groceries to beauty products, have soared 43% over the past month, ranking as the top performer in the Nasdaq Golden Dragon China Index, which has slipped 0.9%. The stock has now rallied 167% from its March low, trouncing competitors including Alibaba Group Holding Ltd. and JD.com Inc.

That outperformance highlights just how price-sensitive consumers have become as the economy falters under China’s Covid-Zero policies and mounting debt woes in the property market. Data on China exports added to the signs of a darkening economy.

From Reuters:

Sea’s e-commerce unit is leaving Argentina and closing most of its operations in Chile, Colombia and Mexico, retreating from much of Latin America to focus on profitability over growth.

Shopee will close offices in Chile and Colombia and maintain just a small local presence in Mexico to support regional markets, according to a person with knowledge of the matter and an internal email seen by Bloomberg News. Shopee will continue to operate a cross-border e-commerce service in those markets.

The decision should affect a few hundred jobs, said the person, who asked not to be named as the matter was private. Sea however will maintain its presence in Brazil, by far the largest market in the region, though a focus also on rivals like Alibaba Group.

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