|Day's Range||27,980.50 - 28,492.03|
|52 Week Range||24,899.93 - 30,280.12|
The stock market took a turn for the worse Tuesday after the Centers for Disease Control reported the first case of coronavirus in the U.S.
Stocks in Hong Kong led losses regionally among major Asian markets on Tuesday after ratings agency Moody’s cut its rating for the city to Aa3 from Aa2 on Monday.
Hong Kong’s Hang Seng index closed down 2.8 per cent in its biggest one-day drop this year, while the CSI 300 index of stocks listed in Shanghai and Shenzhen ended its session 1.7 per cent lower. Capital Economics, recalling the previous Sars outbreak in China 17 years ago, said travel and tourism spending had initially been hit hard back in 2003.
Chinese pharmaceutical stocks skyrocketed Monday as China reported more than 100 new cases of pneumonia caused by a new strain of coronavirus.
The United States removed China from a list of countries considered currency manipulators just two days before top trade negotiators for Washington and Beijing signed a key “Phase One” trade deal, the Treasury Department announced on January 13.
China's economy has broken past the $14 trillion barrier, two-thirds the size of the United States. But population and output increases are at decades-long lows.
Attention will now switch to economic and corporate fundamentals from the buzz surrounding the trade front, following the signing of a partial deal between China and the US. Strong retail sales numbers sent US stocks to all-time highs in overnight trading. Now, all eyes will be on China as the Asian nation is expected to release a slew of key economic data, including full-year economic growth.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
This is the slowest annual growth for China's gross domestic product since 1990, when international sanctions following the Tiananmen Square Massacre weakened the country's economy. The number is still in line with the government's own expectations, which had predicted a GDP growth between 6% to 6.5%, and those of the International Monetary Fund and the World Bank. The slower growth comes as China faced a trade war with the United States and political turmoil at home with raging protests in Hong Kong.
The S&P; 500 Index and the Dow Jones Industrial Average both reached new highs in overnight trading in the US, as traders cheered the signing of the phase one deal between Beijing and Washington. An initial reading of the agreement shows that China will need to do more to protect intellectual property rights and ramp up purchase of American goods to narrow the trade gap between the two nations. Still, markets in Asia reacted differently as regional traders probably need more time to get into the details of the deal.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
The Australian share market surged into record territory on Thursday, passing the 7000-point milestone for the first time ever. The Bank of Japan is expected to keep monetary policy steady next week.
Share prices were mixed Thursday in moderate trading in Asia after the U.S. and China signed a preliminary trade agreement that investors hope will bring better relations between the two biggest economies.
Markets in Asia remain mixed on Thursday as the United States and China signed the long-awaited phase one of the trade deal, the speculations over which have significantly impacted the markets' movement during the past months. President Donald Trump on Wednesday signed the 86-page long agreement with Chinese Vice Premier Liu He. Under the agreement, China has agreed to purchase $200 billion worth additional goods and services from the U.S. by 2021, in particular, agricultural products and energy.
Good day, tradersTraders will probably be braced for another volatile day after China and Hong Kong stocks dropped after a short burst on concerns about excessive gains yesterday. Though China and the US are soon expected to ink the much-heralded phase one trade deal, reports have emerged that some tariffs on Chinese goods are likely to stay in place until after the presidential elections and any cut will rest on how Beijing complies with the agreement.Hong Kong's market is expected to remain busy for the rest of the week, with three IPOs trading today and another seven tomorrow. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
The fact that tariffs are likely to remain in place until after the 2020 U.S. presidential elections is rattling investors along with U.S. Treasury Secretary Steven Mnuchin’s comment that existing tariffs on Chinese goods would stay, pending further talks.
The signing on Wednesday of a trade pact should see China double U.S. imports, though exactly on what may remain secret. Investors also fret it can't follow through.
The fact that the U.S. and China are finally set to sign the long-awaited phase one of their trade deal on Wednesday, ending an 18-month long trade war, provided a sigh of relief to the traders and markets in Asia, the European Union, and the U.S. surged earlier in the week. President Donald Trump earlier said that the second phase of the trade deal will not be signed until at least after the U.S. presidential elections in November. The treasury department took China off the "currency manipulator" list on Monday.
the label of the country as a currency manipulator, ahead of the signing this week of a “phase one” trade deal between the two sides. China a currency manipulator in August after the Chinese central bank allowed the renminbi to weaken beyond Rmb7 to the dollar. Lifting that label on Monday, Steven Mnuchin, US Treasury secretary, said China had “made enforceable — commitments to refrain from competitive devaluation” and pointed to the imminent broader agreement on trade.
Australian shares hit record highs on Tuesday, powered by gains in financial and mining sectors, as optimism over a planned signing of a preliminary Sino-U.S. trade deal lifted investor spirits.
Stocks in Asia and the European Union surged Monday, with the United States and People's Republic of China set to sign the long-awaited first phase of their trade deal later this week. President Donald Trump is expected to sign the trade deal with Chinese Vice Premier Liu He on Wednesday. Liu, who led the trade deal negotiations from the Chinese side, will arrive in the U.S. later Monday for a three-day visit, Reuters reported.
China’s blue-chip index closed at a near 2-year high on Monday, amid strength in technology shares, as investors turned optimistic ahead of the signing of the trade deal.
Good day, tradersAfter Chinese and Hong Kong markets ended last week on a high, the phase one deal between US and China to be signed this week is likely to influence proceedings.Stay tuned for the latest developments.\- Zhang Shidong in Shanghai and Srinivasan Iyer in Hong KongThis article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
Hang Seng Indexes Company, responsible for compiling the benchmark stock index in Asia's third-largest stock market, is taking public feedback on what could become the biggest revamp in its 36-year history.The company is weighing the feasibility of allowing companies with weighted voting rights (WVR) such as the Chinese smartphone maker Xiaomi, and secondary listings such as the technology behemoth Alibaba Group Holding, to be included in the Hang Seng Index benchmark, according to a consultation paper released on its website on Monday. It is also considering capping the weighting of the financial sectors in the key gauge.The consultation process will end on March 13, it said. The result may be announced in May, the index compiler said.The move may be a precursor to the inclusion of Chinese technology companies like Alibaba Group Holding, Meituan Dianping and Xiaomi Corporation, which adopted a WVR-style capital structure that has split the investment community as either being too good to ignore or too risky for general investors. Alibaba get fast entry into Hang Seng Composite Index in boon for city's stock market tradingThe three companies together commanded almost HK$5.3 trillion (US$679 billion) in market value at the end of 2019, or about 56 per cent of the current market capitalisation of Hang Seng Index's 50 constituent members."There is a diverse range of market views over the index eligibility of weighted voting rights," the HSI paper said. "As these entities are usually large technology-related mainland companies with global business interests, advocates see them as an excellent investment opportunity that is too good to ignore."Further, from the perspective of market representation, it seems inappropriate to exclude these large-cap companies from key benchmark indexes."On the other hand, opponents have raised concerns about the unequal voting right structure of WVRs, which might disadvantage general shareholders given the superior voting rights of certain 'minority' shareholders."The index compiler is also seeking opinions on the eligibility of companies with secondary listing status in Hong Kong, since the stock exchange regulator introduced a concessionary route in its listing rules to enable companies like Alibaba Group Holding to list in the city. New Hong Kong dual-share listings to be tradeable through Stock Connect schemesAlibaba, owner of the South China Morning Post, was listed in November last year. It was preceded by Uniqlo store operator Fast Retailing Company of Japan, Canadian miner SouthGobi Resources and insurer Manulife.At present, only primary listing companies can be constituent stocks.Traditionally, many of the secondary listing companies have low turnover. However, Alibaba's secondary listing has attracted average daily turnover of HK$2.496 billion a day, making it one of the most traded stocks.HSI Company expected more US-listed tech stocks may follow in the footsteps of Alibaba with a secondary listing here."Hang Seng Index represents the Hong Kong stock market. If a company has a big market cap and is actively traded in the Hong Kong market, they should be included in the index or otherwise the index cannot represent the local market in full," said Clement Chan Kam-wing, managing director of accounting firm BOD."However, there are concerns from the passive fund managers that dual-class shareholding companies do not follow the one share, one vote principle. The index compiler will need to consider the corporate governance and shareholder protection angle."On the financials sector weighting, the compiler said the industry has dominated the benchmark for some time, with 11 finance stocks accounting for 48.3 per cent of the aggregate weighting in the main index and 34 per cent of the broader Hang Seng Composite Index.Although the compiler company is only 36 years old, the Hang Seng Index itself was established half a century ago.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
(Bloomberg) -- Hong Kong is experiencing a period of triple-short covering that’s helping drive stocks higher despite headwinds in the local economy, according to Jefferies Financial Group Inc.Improving sentiment in a trio of markets -- the yuan, interest rates and initial public offerings -- has left investors with short positions in equities forced to cover, strategist Sean Darby wrote in a note Monday.Months of political unrest have pushed the city into recession, yet equities have held their ground with the Hang Seng China Enterprises Index of mainland China shares listed in the city clawing back its losses since bottoming out in August. The gauge climbed Monday, and has risen almost 2% so far this year.“While domestic political issues are still present, the shift in currency and interest-rate markets is overwhelming any pessimism over the economy,” Darby wrote. “The China H-share index is by and large the biggest beneficiary,” thanks in part to its sensitivity to moves in the yuan.The three Hong Kong factors which have surprised investors according to Jefferies are:A stronger yuan as the U.S. and China closes in on a phase-one trade deal, cooling earlier expectations of a depreciationA stronger Hong Kong dollar thanks to inflows from the U.S.-H.K. rate differential. The HIBOR-LIBOR spread has reached its widest since the 1997 Asia financial crisis on Federal Reserve moves that have pushed U.S. rates lower than Hong Kong’sA revival in initial public offerings in thanks to the popularity of dual-listed shares, especially Alibaba Group Holding Ltd.’s successful secondary listingDarby suggests investors look for A shares sensitive to the onshore yuan, including the China airlines, and H shares correlated to HIBOR, namely China financials.The H share index overall is “not overbought on valuation or risk while neutral on momentum” said Darby, who remains bullish on the gauge.Stock-Market SummaryMSCI Asia Pacific Index ex-Japan up 0.5%Hong Kong's Hang Seng Index up 0.8%; Hang Seng China Enterprises up 1%; Shanghai Composite little changed; CSI 300 up 0.3%Taiwan's Taiex index up 0.5%South Korea's Kospi index up 0.7%; Kospi 200 up 0.6%Australia's S&P/ASX 200 down 0.5%; New Zealand’s S&P/NZX 50 little changedIndia's S&P BSE Sensex Index up 0.6%; NSE Nifty 50 up 0.5%Singapore's Straits Times Index little changed; Malaysia’s KLCI down 0.2%; Jakarta Composite little changed; Thailand's SET up 0.4%; Vietnam's VN Index little changedS&P 500 e-mini futures up 0.3% after index closed down 0.3% in last sessionTo contact the reporter on this story: Eric Lam in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Cecile Vannucci, Cormac MullenFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
A deadly virus in China is having a major impact on the global market. Yahoo Finance's Anjalee Khemlani and Akiko Fujita joins On The Move to break down the details.