Chi­nese shares claw back ear­lier losses

The Pak Banker - - MARKETS/SPORTS -

SHANG­HAI:

The Shang­hai Com­pos­ite fin­ished the day down 0.52% at 2,735.56 af­ter fall­ing more than 4% ear­lier in the day, de­spite strong per­for­mances on US and Euro­pean stock mar­kets. On Tues­day the bench­mark in­dex saw losses of more than 6%.

Most other mar­kets in the re­gion saw a slight re­cov­ery from the pre­vi­ous day's falls. Hong Kong's Hang Seng picked up the US sen­ti­ment and fin­ished the day up 1% at 19,052.45 points.

Ja­pan's Nikkei 225 rose by 2.7%, clos­ing at 17,163.92 af­ter shed­ding 2.4% on Tues­day. Shares in car­maker Toy­ota rose by 3.8% as De­cem­ber sales fig­ures con­firmed the com­pany re­mained the world's big­gest car-seller for the fourth straight year.

Me­dia re­ports that it was ex­plor­ing a part­ner­ship with fel­low car man­u­fac­turer Suzuki were de­nied by both sides, but Suzuki saw its shares jump 11.4%.

Fel­low car­maker Dai­hatsu saw its shares soar by 16.4% af­ter Toy­ota said it was con­sid­er­ing buy­ing the rest of the minicar maker. Toy­ota al­ready owns a ma­jor­ity stake in Dai­hatsu.

A sharp rise in oil dur­ing US trade had boosted in­vestor sen­ti­ment in the US andEurope on hopes that both Opec and non-Opec pro­duc­ers may take ac­tion to tackle over­sup­ply, af­ter the oil car­tel on Mon­day called for co-op­er­a­tion from oil pro­duc­ing na­tions out­side the car­tel.

But the price of Brent crude later lost most of its gains, clos­ing 1.4% up at $30.92. "The pos­i­tive sen­ti­ment stemmed from strong US cor­po­rate earn­ings and talk of Opec and Rus­sia con­sid­er­ing pro­duc­tion cuts. We con­sider the like­li­hood of any agree­ment be­tween th­ese par­ties as ex­tremely low," ANZ bank said in a note on Wed­nes­day. Aus­tralian mar­kets re­opened on Wed­nes­day af­ter a na­tional hol­i­day and the ASX 200 fin­ished the day 1.2% down at 4,946.40 points, track­ing Tues­day's sell-off else­where in Asia.

The lat­est eco­nomic data from Aus­tralia showed con­sumer prices had edged up only mod­estly in the last quar­ter.

Core in­fla­tion slowed to the lower end of the cen­tral bank's tar­get range, which could be an in­cen­tive for the cen­tral bank to cut in­ter­est rates fur­ther.

"As De­cem­ber quar­ter in­fla­tion was in line with RBA fore­casts it is prob­a­bly not low enough to bring on an­other rate cut from the RBA on its own," an­a­lyst Shane Oliver of AMP cap­i­tal said in a note. "But with in­fla­tion run­ning at the bot­tom of the 2-3% in­fla­tion tar­get it leaves plenty of room for an­other rate cut and helps re­in­force the RBA's eas­ing bias." In South Korea, the bench­mark Kospi in­dex closed 1.3% higher at 1,896.14 points.

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