Tesco has slipped 3.6p to 339.6p after issuing new trading figures to coincide with an analyst trip to Asia.
The company said like-for-like sales in South Korea had fallen 2% in the 10 weeks to November 1, compared to a flat performance in the first six months of the year. China grew by 8% in the 10 weeks, compared to 14%, and Malaysia was up 2%, compared to 1%. In a note on yesterday's briefings by the group, Citigroup analyst James Anstead said:
"In Malaysia management had hoped for a stronger sales rebound following the annualisation of the Makro stores acquisition.
"While these patterns are hardly disastrous, they suggest that consumers are acting more cautiously everywhere. Though this is hardly unexpected, it is a concerning trend when mixed with the threat of declining food inflation.
"There was no other specific new information, but there were some interesting remarks made. Phil Clarke [Tesco's head of Europe and Asia] is happy with the dramatic progress made in Malaysia since the last investor trip in 2004. Interestingly, Clarke also appears confident that Tesco's Japanese business – which to date has not shone – will soon prove its long-term credentials."
