Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

China’s Warnings Weigh On Asian Equities

By MarketPulse (Jeffrey Halley)Stock MarketsAug 03, 2021 05:14AM ET
www.investing.com/analysis/chinas-warnings-weigh-on-asian-equities-200595668
China’s Warnings Weigh On Asian Equities
By MarketPulse (Jeffrey Halley)   |  Aug 03, 2021 05:14AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Asian equities soft after mixed US session

Wall Street finished on a slightly negative note after softer than expected US PMI data. That saw some rotational flows out of cyclical, and tech with the S&P 500 falling 0.19% while the NASDAQ edged 0.06% higher and the Dow Jones fell by 0.29%. The selling pressure was limited by the fall in US yields providing some peripheral support.

US futures on all three indexes have risen in Asia by around 0.20%, but that has not been enough to stop Asian markets from falling into the red. The rise in COVID-19 cases and their geographical spread in mainland China is clearly spooking local investors today. That sees the Nikkei 225 falling by 0.85%, with the KOSPI clinging to unchanged.

COVID-19 aside, the situation on the ground got murkier in China this morning, with the Economic Information Daily likening online gaming to “spiritual opium,” cue Tencent (NYSE:TME) shares and others being sold heavily. After the last few weeks, even oblique warnings from authorities are ignored at your peril, and it seems that regulatory risk is alive and well in China still.

The mainland’s Shanghai Composite was unchanged, but the more tech-weighted CSI 300 fell by 0.60%, while the Hang Seng dropped by 1.0%. After that article, the modest scope of the falls has me thinking that China’s “national team” might be “smoothing” today.

Singapore was down 0.85%, with Kuala Lumpur off 0.30%, while Bangkok rose by 0.40%. Taipei and Manila were flat, with Australia’s All Ordinaries down 0.20% and the ASX 200 down 0.35%.

Europe is likely to take its cue from the rise in US futures this morning and start the day slightly positive. Only a spiraling COVID-19 caseload in Mainland China would likely spill over onto European markets, which has mostly ignored the China clampdown ructions so far.

Yesterday we saw international investors piling into mainland stocks via the Hong Kong/Shanghai connect pipeline. The story mentioned above proves that bargain hunting in China remains fraught with risk still.

Original Post

China’s Warnings Weigh On Asian Equities
 

Related Articles

Daniel Shvartsman
A Bear Market Shopping List By Daniel Shvartsman - Jun 25, 2022 12

Volatility has been the constant in the 2022 bear market. Wherever we go in the next 12-18 months, bargains are starting to emerge. Here are five stocks I think are positioned well...

Brett Owens
Almost 13% Yield Monthly? Come On By Brett Owens - Jun 24, 2022

Patience is the key to being a successful contrarian investor. We buy when fear is widespread. Bear markets are our friends. Let’s sit back and let the market’s...

China’s Warnings Weigh On Asian Equities

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Tochukwu Okere
Tochukwu Okere Aug 03, 2021 3:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email