Shares recover after early weakness
AUSTRALIA’S benchmark index dipped below 5000 points yesterday as investors continued to worry about China’s growth prospects.
The ASX 200 got as low as 4973.4 points before recovering some ground to close 10.2 points down at 5030.4 points.
The Shanghai Composite Index closed 2.5 per cent lower. China’s National Bureau of Statistics yesterday re- vised last year’s gross domestic product figure to 7.3 per cent, from 7.4 per cent.
China’s finance minister Lou Jiwei told a G20 meeting of finance ministers and central bank governors over the weekend that the economy had entered a “new normal”.
Growth was “expected to remain at around 7 per cent and the situation may sustain for four to five years”, he said.
AMP Capital chief economist Shane Oliver said the recent weakness on the Australian market is not the start of a larger downturn. “The falls have not been outsized,” he said. “It’s more a correction on the back of a growth scare. I believe we have already seen the bulk of the damage.”
The ASX 200 fell 8.6 per cent in August and is down 3.4 per cent in September.