China shares slump 6% lead­ing losses across Asia

The China Post - - BUSINESS INDEX & -

Asian shares fell on Tues­day, with Shang­hai lead­ing the declines as in­vestors doubted Bei­jing’s com­mit­ment to prop up shares while Bangkok slumped af­ter a bomb at­tack in the Thai cap­i­tal.

Shang­hai closed down 6.15 per­cent, or 245.51 points, at 3,748.16 — its big­gest daily fall in three weeks — while Hong Kong lost 1.43 per­cent, or 339.68 points, to end the day at 23,474.97.

Tokyo closed down 0.32 per­cent, or 65.79 points, at 20,554.47. Syd­ney fell 1.20 per­cent, or 64.55 points, to 5,303.10 and Seoul dipped 0.62 per­cent, or 12.26 points, to close at 1,956.26.

Thai shares, mean­while, notched their steep­est de­cline this year of 2.56 per­cent and the baht slid to its low­est level since 2009 af­ter a bomb at­tack killed at least 20 peo­ple and in­jured scores.

Asian shares gave up early gains driven by a higher close on Wall Street as jit­ters about the health of China’s econ­omy spread across the re­gion.

Mar­kets have long been on edge about slow­ing growth in China, but con­cerns reached fever pitch last week af­ter a shock de­val­u­a­tion of the yuan sparked fears it is stalling more than pre­vi­ously though.

The steep fall in the yuan scared many in­vestors into drop­ping Chi­nese as­sets and last week Shang­hai and Hong Kong shares saw US$531 mil­lion net out­flows — the ninth week of sales out of 10.

Main­land China’s cen­tral bank on Tues­day said it pumped 120 bil­lion yuan into the money mar­ket, which state media said was the largest sin­gle-day cash in­jec­tion since Jan­uary 2014.

Even a pledge Fri­day by the se­cu­ri­ties reg­u­la­tor, to keep sup­port­ing eq­ui­ties through the state­backed China Se­cu­ri­ties Fi­nance Corp. for years to come, has not re­as­sured some deal­ers.

“In­vestors ran for the exit when the gov­ern­ment failed to step in to sup­port the mar­ket,” Steve Wang, chief China economist at Re­ori­ent Fi­nan­cial Mar­kets, told Bloomberg News.

“The CSF has be­come a main player in this mar­ket so ev­ery­one is watch­ing it. Peo­ple panic when it stops buy­ing.”

Bangkok shares slumped 2.56 per­cent, the most in eight months, led by a slump in tourism stocks. Trans­port-re­lated com­pa­nies were also hit.

Gold was at US$1,119.83 com­pared to US$1,121.23 late Mon­day.

Euro­pean Stocks Drop af­ter

China Plunge

Euro­pean stock mar­kets fell on Tues­day af­ter another plunge on China’s main in­dex, and on the eve of a Ger­man vote on Greece’s new bailout.

Lon­don’s bench­mark FTSE 100 in­dex dropped 0.62 per­cent to stand at 6,509.79 points around mid­day in the cap­i­tal.

Frank­furt’s DAX 30 edged down 0.07 per­cent to 10,932.25 points and the CAC-40 in Paris shed 0.25 per­cent to 4,972.37 com­pared with Mon­day’s close.

Athens’ main in­dex slid 1.43 per­cent to 671.21 points.

In Europe, of­fi­cial data showed that Bri­tain’s an­nual in­fla­tion rate rose to 0.1 per­cent in July.

Mar­kets are scru­ti­niz­ing in­fla­tion data — which has been kept low of late by fall­ing energy and food prices — for in­di­ca­tions of when the Bank of Eng­land may start rais­ing its key in­ter­est rate from the cur­rent record-low level of 0.50 per­cent. In other mar­kets: — Welling­ton fell 0.29 per­cent, or 16.66 points, to 5,710.76.

Fletcher Build­ing was 1.81 per­cent off at NZ$7.58 while Con­tact Energy rose 0.76 per­cent to NZ$5.28

— Manila ended flat, los­ing 3.39 points to 7,333.45.

Top- traded Uni­ver­sal Robina rose 1.06 per­cent to 190 pe­sos, SM Prime Hold­ings was flat at 20 pe­sos, while GT Cap­i­tal dropped 1.22 per­cent to 1,294 pe­sos.

— Mum­bai eased 46.73 points, or 0.17 per­cent, to 27,831.54.

En­gi­neer­ing firm Tata Elxsi gained 19.71 per­cent to 2132.10 ru­pees, while In­dian Bank slid 4.89 per­cent to 153.70.

— Kuala Lumpur rose 7.06 points or 0.45 per­cent to 1,579.60.

May­bank added 2.93 per­cent to 8.43 ring­git and Te­naga Na­sional gained 0.58 per­cent to 10.46, while Public Bank lost 0.11 per­cent to 17.96 ring­git.

— Sin­ga­pore fell 0.58 per­cent, or 17.70 points, to 3,049.65.

City De­vel­op­ments eased 0.56 per­cent to SG$8.95 while Sin­ga­pore Air­lines gained 1.5 per­cent to SG$10.16.

— Jakarta ended down 1.63 per­cent or 74.91 points at 4,510.48.

IT firm Mul­ti­po­lar Tech­nol­ogy gained 4.69 per­cent to 1,340 ru­piah, while media com­pany Media Nu­san­tara Ci­tra fell 6.37 per­cent to 1.910 ru­piah.

— Bangkok closed down 2.56 per­cent, fall­ing 36.13 points to 1,372.61.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.