Post by Matilda on Jan 4, 2016 22:24:37 GMT 10
Yahoo Finance - finance.yahoo.com/news/asia-stocks-start-2016-weak-note-middle-east-030248559--finance.html
SEOUL, South Korea (AP) — Chinese stocks plunged nearly 7 percent Monday, triggering an emergency trading suspension and pushing global markets sharply lower. The grim start to 2016 was caused by weak Chinese manufacturing data and tensions in the Middle East.
The Shanghai Composite Index dived 6.9 percent to 3,296.66, its lowest level in nearly three months. The drop led the Shanghai and Shenzhen stock markets to halt trading for the remainder of Monday to avert steeper falls, the official Xinhua News Agency said.
It was the first time China used the "circuit breaker" mechanism it announced late last year.
The jitters extended to Europe and were expected to push U.S. markets lower upon their open. The DAX index in Germany, whose export-led economy is sensitive to the fortunes of China, tumbled 4.2 percent to 10,288.22. Britain's FTSE 100 fell 2.4 percent to 6,090.76 while France's CAC 40 dropped 2.7 percent to 4,514.03. Dow futures were down 1.7 percent, while S&P 500 futures shed 1.8 percent.
Chinese authorities have been trying for months to restore confidence in the country's stocks after a plunge in prices in June rattled global markets and prompted a panicked, multibillion-dollar government intervention. Beijing is gradually unwinding emergency controls that included a freeze on new stock offerings.
Empty Champagne glasses are placed on the cubicles of stock traders following the ceremonial ringing …
Concerns about China's economic slowdown were revived by weak manufacturing data released Monday, along with Middle East tensions, which pushed up oil prices.
Huang Cengdong, an analyst for Sinolink Securities in Shanghai, said selling accelerated as investors tried to lock in trades before activity was halted.
He expects further losses in coming weeks ahead of corporate earnings reports.
"The market will not improve because there will be heavy selling in the near future," said Huang.
Elsewhere in Asia, Japan's Nikkei 225 tumbled 3.1 percent to close at 18,450.98 and Hong Kong's Hang Seng retreated 2.7 percent to 21,327.12. South Korea's Kospi closed 2.2 percent lower at 1,918.76. Stocks in Australia, Taiwan and Southeast Asia were also lower.
SEOUL, South Korea (AP) — Chinese stocks plunged nearly 7 percent Monday, triggering an emergency trading suspension and pushing global markets sharply lower. The grim start to 2016 was caused by weak Chinese manufacturing data and tensions in the Middle East.
The Shanghai Composite Index dived 6.9 percent to 3,296.66, its lowest level in nearly three months. The drop led the Shanghai and Shenzhen stock markets to halt trading for the remainder of Monday to avert steeper falls, the official Xinhua News Agency said.
It was the first time China used the "circuit breaker" mechanism it announced late last year.
The jitters extended to Europe and were expected to push U.S. markets lower upon their open. The DAX index in Germany, whose export-led economy is sensitive to the fortunes of China, tumbled 4.2 percent to 10,288.22. Britain's FTSE 100 fell 2.4 percent to 6,090.76 while France's CAC 40 dropped 2.7 percent to 4,514.03. Dow futures were down 1.7 percent, while S&P 500 futures shed 1.8 percent.
Chinese authorities have been trying for months to restore confidence in the country's stocks after a plunge in prices in June rattled global markets and prompted a panicked, multibillion-dollar government intervention. Beijing is gradually unwinding emergency controls that included a freeze on new stock offerings.
Empty Champagne glasses are placed on the cubicles of stock traders following the ceremonial ringing …
Concerns about China's economic slowdown were revived by weak manufacturing data released Monday, along with Middle East tensions, which pushed up oil prices.
Huang Cengdong, an analyst for Sinolink Securities in Shanghai, said selling accelerated as investors tried to lock in trades before activity was halted.
He expects further losses in coming weeks ahead of corporate earnings reports.
"The market will not improve because there will be heavy selling in the near future," said Huang.
Elsewhere in Asia, Japan's Nikkei 225 tumbled 3.1 percent to close at 18,450.98 and Hong Kong's Hang Seng retreated 2.7 percent to 21,327.12. South Korea's Kospi closed 2.2 percent lower at 1,918.76. Stocks in Australia, Taiwan and Southeast Asia were also lower.