Asian shares resume slide on fears over Chinese economy
Source: Reuters
Asian stocks looked vulnerable to another sell-off on Tuesday, with investors gripped by fears of a hard landing for the Chinese economy, the world's most important growth engine.
Japan's Nikkei .N225 index fell 3.8 percent to six-month lows while the MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS hit fresh three-year lows.
Underlining concerns about China, Japanese Finance Minister Taro Aso said on Tuesday he hoped China would take action to stabilize its economy and that Tokyo had no plan for now to unveil its own new economic stimulus package.
MSCI's all country world index .MIWD0000PUS fell 3.8 percent on Monday to a 10 1/2-month low, its biggest fall in almost four years. It has lost 9.2 percent over five days.
Read more: http://www.reuters.com/article/2015/08/25/us-markets-global-idUSKCN0QU01U20150825
Let's see how this goes.
Art_from_Ark
(27,247 posts)the Nikkei Heikin average is up 284 points.
http://www.nikkei.com/markets/kabu/
Hydra
(14,459 posts)I'm waiting to see if we have a dead cat bounce or something more interesting.
Art_from_Ark
(27,247 posts)So it looks like it'll stay at +204 for at least an hour and a half or so.
Art_from_Ark
(27,247 posts)The yen suddenly rose against the dollar by 5~6 yen, resulting in a relatively stronger yen and relatively weaker dollar. This apparently spurred selling of Japanese stocks by foreign investors to take advantage of the stronger yen.
Art_from_Ark
(27,247 posts)The Nikkei went from +284 to -734 today, more than a 1000-point spread.
By the way, I was cold-called by a Japanese broker the other day who wanted me to invest in the Nikkei average. I told him that I didn't have all that much confidence in stock markets, but he said that they were expecting the Nikkei to reach 30,000 by the time the 2020 Olympics are held. On the day he called, the Nikkei was above 22,000. Today at closing, it was 17,806.
thebighobgoblin
(179 posts)this is just panic selling and the market will recover. the new normal will be a global economy that accepts the fact that the chinese stock market ain't worth shit but that they still have a strong consumer market with disposable incomes, jobs, and cheaper manufacturing costs, and fairly strong companies. No interest rate hikes here. Stocks will bottom out as part of a regular correction and can be bought at bargain prices.
Warpy
(111,404 posts)but all the rest of the Asian exchanges are in positive territory.
Let's see if they stay there.
The Chinese bloodletting is not over, though.
thebighobgoblin
(179 posts)Things will eventually bottom out. The bigger danger for China in the short term is 5 or 6 percent growth and slower wage growth, which will mean less consumption. Their banking situation is also going to have to be reevaluated, though to the central government's credit they've been trying to slow the lending a bit.
Midnight Writer
(21,823 posts)US stocks plunge as reaction to Asian stock plunge.
Asian stocks plunge over panic of US stock plunge.
US stocks plunge in panic over Asian stock plunge.
And so on.
muriel_volestrangler
(101,399 posts)In China, after their market closed:
It's the fifth interest rate cut since November.
The People's Bank of China also cut banks' reserve requirement ratio by 0.5 percentage points. The moves take effect from Wednesday, the bank said.
http://www.bbc.co.uk/news/uk-34052618