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Estee Lauder, Vale and Qualcomm among losers from slow China recovery

Sluggish investment and consumption in key market slam consumer stocks

Estee Lauder has downgraded its full-year sales forecast, with its CEO explaining that Asia travel retail has recovered more gradually from the pandemic than other regions.   © Reuters

TOKYO -- Shares in companies doing business in China that had been bolstered by hopes of a post-zero-COVID boom in the world's second-largest economy are slumping on weak economic data that has brought these expectations into question.

Such consumer stocks as Burberry, which generates more than 20% of its revenue in China, and France's Groupe SEB -- maker of Tefal cookware, a well-known brand in China -- have been hit hard. Both shed more than 10% of their value in dollar terms in May after gaining more than 30% in the first four months of the year. Shiseido fell nearly 7% for the month in yen terms after rising 5% between January and April.

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