Monday’s fall came a day before China reports fourth-quarter and full-year economic growth data. It is expected to report an annual 7.2 percent pace, which would be the lowest in 24 years. Cao Xuefeng, head of research at Huaxi Securities in Chengdu, said the GDP data could hurt the market as “when sentiment is low, data announcements can have a very negative impact”. DOWNWARD TREND TO STAY? He said the downward trend for Chinese share prices “is unlikely to change before Chinese New Year,” which comes in mid-February.
Japan Stocks Rise, Led by Energy Explorers, on Yen and Crude Oil – Bloomberg
16, the first decline in six days. A weaker yen boosts exporter earnings when repatriated. The currency gave up some of that move today, strengthening 0.3 percent. Sony gained 2.5 percent to 2,443.5 yen.
Q&A: Why China’s stock market plunged 8 percent – Yahoo News
Bank stocks were hit after the banking regulator issued draft rules to tighten supervision of entrusted loans, a kind of shadow banking. The banks sub-index plummeted 9.97 percent and the financial sub-index sank 9.62 percent. All China CSI300 stock index futures were down at best stocks to wn 4/1/13 least 10 percent, except the September index which dove 12 percent. The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 7.7 percent, to 3,355.16. The Shanghai Composite Index also lost 7.7 percent, to 3,116.35 points.
Asian Stocks Rise After Oil Surge Boosts S&P 500 Index – Bloomberg
13. The International Energy Agency lowered forecasts for supplies from outside OPEC and said prices could recover. U.S. Stocks The S&P 500 rose to 2,019.42 on Jan.
China stocks suffer biggest one-day tumble since June 2008 – Yahoo Finance
Despite the sharp fall, the Shanghai Composite Index is still up 55 percent in the past 12 months and up 33 percent for the past three months. WHY DID THE MARKET FALL SO MUCH? Investors and analysts see the penalties against the brokerages as foreshadowing more curbs on credit-financed trading by China’s government. Authorities want to stop the stock market’s boom over the past year from turning into a bubble that could damage the broader economy. The Shanghai Composite surged 54 percent last year, partly because of easy credit that investors used to finance their trading.