Chinese stocks fell today and so were the case with South Korea and Australia led Asian stock markets. This all is happening due to the deadlock in Washington which is expected to have a grave impact on the global economies. In today’s trading, Asia took its lead from overnight declines on Wall Street where the Dow Jones Industrial Average fell 0.9 percent.
Shanghai stocks opened after a week’s national holiday and fell 0.1%.
Similarly, the Hang Seng Index managed to rise 0.3%; thus, China had a mixed trading day. According to investors with China closed for a week, the news flow from Asia’s largest economy has been slow; however, now that it has opened up, we can read more about the performances of the companies and stocks.
China’s Recovery is Important
Investors hope that China will soon recover from the slow growth; however, as we have already reported earlier that in its flagship annual economic publication, Asian Development Outlook 2013, ADB revised down its 2013 gross domestic product (GDP) growth forecast for China and other Asian countries. (Read: http://www.forexminute.com/blog/china-and-india-slowing-better-prospects-for-japanese-economy-adb/)
ADB in its report says that though India and China will be faring below projections, Japan will have one of the best performances; thus, it will be Japan that will be on the growth path and not China in the next couple of years. China’s glorious growth rate seems past its prime and is now in not so promising.
Whereas Japan’s Topix index erased losses and climbed 0.3 percent, South Korea’s Kospi index dropped 0.2 percent. Hang Seng Index of Hong Kong gained 0.9 percent. Similarly, Singapore’s Straits Times Index rose 0.3 percent and Taiwan’s Taiex index added 0.3 percent in yesterday’s trading.
New Zealand’s NZX 50 Index fell 0.3 percent in comparison to Australia’s S&P/ASX 200 Index which fell 0.3 percent. The MSCI Asia Pacific Index saw a better trading day and climbed 0.3 percent to 138.25 as of 12:48 p.m. in Tokyo. In volatile Asian trading, MSCI closed yesterday at the lowest since Sept. 13 amidst the growing concern over the partial U.S. government shutdown.
According to market analysts, the market isn’t moving anywhere because of the external overhang about the U.S. fiscal situation. China has shown its concern over this and has requested the U.S. that this is the United States’ responsibility to manage its debt and provide security to the China investment.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org