Asia stocks mixed as China surges on new short­ing rules

The China Post - - BUSINESS INDEX & - BY JEN­NIFER O’MA­HONY

Asian stocks were mixed in af­ter­noon trad­ing, as China an­nounced new rules re­strict­ing short selling af­ter a re­cent mar­ket rout and Aus­tralia held in­ter­est rates at rock­bot­tom lev­els.

Shang­hai jumped 3.69 per­cent or 133.63 points to 3,756.54, while Hong Kong ended flat, down 0.02 per­cent or 5.3 points to 24,406.12.

Tokyo eased 0.14 per­cent or 27.75 points to close at 20,520.36, while Seoul gained 0.97 per­cent or 19.50 points to close at 2,027.99.

In Aus­tralia, the bench­mark S&P/ASX200 in­dex ad­vanced 0.33 per­cent or 18.6 points to close at 5,697.9.

Shang­hai en­joyed a late spurt af­ter China’s two stock ex­changes an­nounced new rules that ef­fec­tively re­strict short selling, declar­ing Mon­day that in­vestors who bor­row shares must wait un­til the next day to pay back the loans, in­stead of set­tling the same day as un­der pre­vi­ous rules.

Since the Shang­hai mar­ket crashed 30 per­cent from its peak in mid-June, China has an­nounced a se­ries of sta­bi­liz­ing mea­sures, in­clud­ing a ban on ma­jor share­hold­ers selling stocks and sus­pen­sion of new share of­fer­ings.

The Shang­hai ex­change state­ment said the move aimed to im­prove risk man­age­ment and pro­tect mar­ket or­der.

“All the gov­ern­ment’s mea­sures in­clud­ing re­stric­tions on short selling are work­ing now,” Wu Kan, a Shang­hai-based fund man­ager at JK Life In­sur­ance Co., told Bloomberg News. “It’s a re­bound and given the mo­men­tum, it may last for some days.”

In­vestor ner­vous­ness has been com­pounded by weak Chi­nese man­u­fac­tur­ing ac­tiv­ity last month, with sim­i­larly neg­a­tive data an­nounced in the United States on Mon­day.

In Tokyo share trade, Toy­ota fell 0.96 per­cent to end at 8,121 yen. The com­pany said af­ter the clos­ing bell its net profit for the three months to June jumped 10 per­cent to US$5.2 bil­lion.

Mar­kets Await U.S. Eco­nomic

In­di­ca­tors

Else­where, In­dia’s cen­tral bank kept its own key in­ter­est rate on hold Tues­day, as an­a­lysts had ex­pected, re­sist­ing gov­ern­ment pres­sure for a fourth cut of the year.

The Re­serve Bank of In­dia (RBI) has cut rates three times in 2015 to aid In­dia’s econ­omy, which out­per- formed China’s for the first three months this year.

The RBI said the bench­mark repo rate — the level at which it lends to com­mer­cial banks — would re­main at 7.25 per­cent.

Gov­ern­ment pres­sure to an­nounce another cut was eased by data re­leased Mon­day that showed fac­tory out­put climbed to a six­month high in July on strong de­mand.

Stan­dard & Poor’s said it had changed the out­look for the Euro­pean Union from sta­ble to neg­a­tive af­ter the bloc’s sup­port for Greece and fol­low­ing Bri­tain’s de­ci­sion to vote on leav­ing the EU.

Gold fetched US$1,092.65 an ounce com­pared with US$1,092.73 on Mon­day. In other mar­kets:

— Mum­bai fell 0.41 per­cent, or 115.13 points, to end at 28,071.93 points.

Hero Mo­tor Cor­po­ra­tion fell 2.73 per­cent to 2,624.25 ru­pees, while Tata Steel gained 3.39 per­cent to 256.40 ru­pees.

— Bangkok slid 0.69 per­cent, or 9.88 points, to 1,432.16.

Elec­tric­ity Gen­er­at­ing dropped 0.65 per­cent to 153.50 baht, while oil com­pany PTT fell 2.75 per­cent to 318.00 baht.

— Kuala Lumpur lost 1.17 per­cent, or 20.46 points, to 1,723.73.

May­bank fell 0.11 per­cent to 9.17 ring­git and Bri­tish Amer­i­can To­bacco dropped 0.89 per­cent to 66.70 ring­git, while Public Bank rose 0.52 per­cent to 19.16 ring­git.

— Sin­ga­pore closed down 0.05 per­cent, or 1.75 points, to 3,191.04.

Real es­tate devel­oper Cap­i­taland eased 1.85 per­cent to SG$3.18 while Sin­ga­pore Air­lines slipped 1.34 per­cent to SG$10.31.

— Jakarta ended down 0.40 per­cent, or 19.10 points, at 4,781.09.

Coal miner Bukit Asam gained 5.04 per­cent to 6,250 ru­piah, while telecom­mu­ni­ca­tion in­fra­struc­ture com­pany Tower Ber­sama In­fra­struc­ture fell 3.31 per­cent to 8,025 ru­piah.

— In Welling­ton, the NZX-50 was down 0.40 per­cent or 24.09 points at 5,933.76.

Spark was 1.67 per­cent off at NZ$2.945 while Merid­ian Energy was down 1.29 per­cent at NZ$2.29.

— The Philip­pine stock ex­change closed 0.33 per­cent higher, gain­ing 25.03 points to close at 7,598.29.

Top-traded Globe Tele­com Inc. gained 1.37 per­cent to 2,670 pe­sos while Metropoli­tan Bank and Trust Co. rose 0.51 per­cent to 88.50 pe­sos.

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