20 Aug 2015
Shanghai Composite back in the red, drags Asia lower
FXStreet (Mumbai) - The benchmark Chinese indices resumed its downslide on Thursday, stalling the recovery seen in the previous after the Shanghai Composite index tumbled near 4% in early trades and flipped to gains at close.
China’s stock markets saw a minor rebound from around 3550 levels on Wednesday as markets widely believed that the Chinese authorities would step in at 3500 levels to prop up share prices as seen last month.
As Bloomberg reports, the government has armed a state agency with more than $400 billion to bolster share prices and told state-owned companies to buy stocks. It’s seeking to prop up the market after a drop of more than 30 percent in the Shanghai Composite threatened to undermine confidence in President Xi Jinping’s ability to manage the economy.
Asian indices track China markets lower
Asian markets traded with sizeable losses on Thursday after Fed minutes took investors by surprise, with the policy committee suggesting weak inflation could hold them back from raising interest rates. This pushed USD/JPY lower below 124 handle, lifting the yen across the board, eventually negatively impacting exporters’ stocks.
The Japanese benchmark Nikkei 225 is losing -0.61% at 20100. While the benchmark Australian S&P/ASX 200 index reversed previous gains and drops -1.41% at 5304 as resource and financial stocks were weighed down by a lack of risk sentiment. Korea's benchmark Kospi index now trades -0.84% at 1,922 points in Seoul.
The Hong Kong's benchmark Hang Seng index losing -1.53% at 22816 while mainland China's benchmark Shanghai Composite pared losses, although trades -1.15% at 3750.
China’s stock markets saw a minor rebound from around 3550 levels on Wednesday as markets widely believed that the Chinese authorities would step in at 3500 levels to prop up share prices as seen last month.
As Bloomberg reports, the government has armed a state agency with more than $400 billion to bolster share prices and told state-owned companies to buy stocks. It’s seeking to prop up the market after a drop of more than 30 percent in the Shanghai Composite threatened to undermine confidence in President Xi Jinping’s ability to manage the economy.
Asian indices track China markets lower
Asian markets traded with sizeable losses on Thursday after Fed minutes took investors by surprise, with the policy committee suggesting weak inflation could hold them back from raising interest rates. This pushed USD/JPY lower below 124 handle, lifting the yen across the board, eventually negatively impacting exporters’ stocks.
The Japanese benchmark Nikkei 225 is losing -0.61% at 20100. While the benchmark Australian S&P/ASX 200 index reversed previous gains and drops -1.41% at 5304 as resource and financial stocks were weighed down by a lack of risk sentiment. Korea's benchmark Kospi index now trades -0.84% at 1,922 points in Seoul.
The Hong Kong's benchmark Hang Seng index losing -1.53% at 22816 while mainland China's benchmark Shanghai Composite pared losses, although trades -1.15% at 3750.