The downward movement of stocks in the Asian market is continuing as China’s benchmark index hit a new one-month low. This happened after HSBC’s flash purchasing managers’ index or PMI for December fell to 50.5, which is slightly lower than 50.8 in November; however, it is having quite a significant impact on the market.
Reports are ripe that as many of the banks in China are looking to liberalize their interest rates, the market is wary about the same. In fact, today, the loss was seen in the financial companies wherein Citic Securities was down 2 percent and Minsheng Bank was down 1 percent. This is happening amidst the reports that the nation’s securities regulator has come up regarding IPO.
In its statement China’s securities regulator said that it will not involve itself in IPO pricing when the current freeze on listings ends next year; however, it says that it will allow the market to take the lead in pricing assets. On the other hand, automakers too declined to an extent after the city of Tianjin announced that it will impose a quota on new car plates from today.
In today’s trading, the Nikkei was 1.6% lower. Earlier, last week, on Friday, the stock market of Japan was up; however, the momentum discontinued as today’s stocks are lower. A major reason behind this is that the yen has recovered against the dollar and the export dependent Japanese economy weakens whenever its national currency gains strength.
On the other hand, Australia’s S&P ASX 200 index hovered near a new three-and-a-half month low. Market observers believe that the markets have been impacted by Prime Minister Tony Abbott’s statement wherein he said that the country’s finances were in worse shape than previously believed.
Australian Prime Minister on Receiving End as He Sounds Failing in Filling His Promise
Investors believe that from the statement from Abbott it looks he may backtrack on his pledge to return the budget to a surplus within four years. An indication of poor financial condition of the country is visible from the fact that Australia’s S&P ASX 200 index hovered near a new three-and-a-half month low.
Following the trend in neighboring markets China and Japan, even the Kospi fell flat as South Korean stocks closed at their lowest level in over three months for a third straight session. This is happening amidst the news that foreign investors continued to be net sellers of domestic shares.
To contact the reporter of this story: Jonathan Millet at email@example.com