See More on Facebook

Economics

Asia stocks slow to rebound following Wall Street gains

The rebound in Asian markets stalled on Wednesday (Feb 7), with several indexes in the region finishing the session in negative territory.


Written by

Updated: February 8, 2018

Japan’s Nikkei 225 closed barely in positive territory after rising more than 3 percent earlier in the day, while South Korea’s Kospi reversed early gains to finish the session lower by 2.31 percent at 2,396.56.

Hong Kong’s Hang Seng Index erased early gains to track lower by 0.76 percent at 3:04 p.m.

Hong Kong-listed shares of Chinese banks were also in negative territory before the close, with China Construction Bank and Bank of China lower by 1.92 percent and 1.37 percent, respectively.

Meanwhile, mainland markets extended losses after last session’s sell-off. The Shanghai composite declined 1.81 percent to close at 3,309.58 and the Shenzhen composite shed 0.68 percent to end at 1,714.39. The blue chip CSI 300 index finished lower by 2.38 percent.

Mainland financial stocks took a beating and were among the worst-performing sectors on Wednesday: Shares of Bank of China listed in Shanghai fell 3.57 percent and Industrial and Commercial Bank of China lost 5.94 percent by the end of the day. Among insurers, Ping An Insurance Group finished the session down 3.32 percent.

The slump comes after Asian markets showed signs of recovery on Wednesday morning following a rebound on Wall Street.

“The market hasn’t fully recovered from the aftermath of the global equities rout,” Hiroaki Hiwada, a strategist at Toyo Securities Co. in Tokyo told Bloomberg. “It’s easy to have selling on a rebound as the market sentiment remains fragile especially after the massive selloff” of the past two days.

The United States’ leading stock market index, the Dow Jones Industrial Average index, plunged 1,175 points on Monday (Feb 5).

The stock market sell-off accelerated on Friday when the US Labour Department released employment numbers which showed stronger growth in wages than was anticipated, the Statesman reported quoting IANS.

This triggered fears that inflation would be pushed higher and that America’s central bank would need to raise interest rates in order to keep it under control.

Monday’s sell-off was driven by firms moving to sell stocks to put more money into assets such as bonds which benefit from higher rates, says Erin Gibbs, portfolio manager for S&P Global Market Intelligence, according to IANS.

“This isn’t a collapse of the economy. This isn’t a concern that markets aren’t going to do well, or that corporate America isn’t going to do well,” she said.

“This is concern that the economy is actually doing much better than expected and so we need to re-evaluate.”



Enjoyed this story? Share it.


Nadia Chevroulet
About the Author: Nadia is an Associate Editor at Asia News Network.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Economics

Pakistan seals financial assistance from UAE

$3 billion financial assistance sealed as Abu Dhabi Crown Prince meets Imran Khan in Islamabad. Pakistani and United Arab Emirates leadership have met thrice now in three months. Prime Minister Imran Khan visited the UAE twice after assuming office in August to seek economic assistance. Both countries last week finalised the terms and conditions of a $6.2 billion support package for Islamabad to help address its balance-of-payments crisis. A joint statement issued after the UAE royal’s visit said Prime Minister Khan thanked the crown prince for the “generous” balance-of-payments support of $3 billion, which appears to have materialised first out of the total financial package. Crown Prince Sheikh Mohammed bin Zayed, who last visited


By Dawn
January 7, 2019

Economics

AIIB approves applications of six more countries

The total of countries with a membership in the China-led bank now stands at 93. The Asian Infrastructure Investment Bank (AIIB) announced on Wednesday that its Board of Governors has approved the membership applications of six more countries, bringing AIIB’s total approved members to 93. The new group of approved members is comprised of Algeria, Ghana, Libya, Morocco, Serbia and Togo. “Within three years, AIIB’s membership has increased from the 57 founders to 93 approved members from almost every continent. This shows our member’s commitment to multilateral cooperation and strengthens AIIB’s role in the international financial community,” said AIIB Vice President and Corporate Secretary Sir Danny Alexander. “The growing membership of the Bank in Europe and Africa also reflects the importance for growth and development of inter-regional connectivity, esp


By China Daily
December 21, 2018

Economics

Malaysia files criminal charges against Goldman Sachs

Two ex-bankers have also been charged in connection to the 1mdb scandal. Malaysia said on Monday it has filed criminal charges at home against Goldman Sachs and two of the U.S. bank’s former employees in connection with a corruption and money laundering probe at state fund 1MDB. Goldman Sachs has been under scrutiny for its role in helping raise $6.5 billion through three bond offerings for 1Malaysia Development Bhd (1MDB), which is the subject of investigations in at least six countries. Malaysia’s Attorney General Tommy Thomas said criminal charges under the country’s securities laws were filed on Monday against Goldman Sachs, its former bankers Tim Leissner and Roger Ng, former 1MDB employee Jasmine Loo and financier Jho Low in connection with the bond offerings. “The charges arise from the commission and abatement of false or misleading statements by all the accused in order to dishon


By The Star
December 17, 2018

Economics

Indonesia plans to make 30 percent bio-diesel blend mandatory

Studies are ongoing on the correct type of petrol. While the government expanded the mandatory use of a 20 percent biodiesel blend ( B20 ) in September, it plans to further boost domestic biodiesel consumption to absorb more crude palm oil (CPO) amid fluctuation in the global market price of the commodity. Apart from improving the distribution of the B20 blend across to the country, the government is also carrying out research to increase the portion of biodiesel in the fuels rom 20 percent to 30 percent ( B30 ) or even to 100 percent ( B100 ). The Energy and Mineral Resources Ministry’s oil and gas director general, Djoko Siswanto, was quoted by kontan.co.id on Monday as saying that B100 fuel was being tested by the ministry. State-owned oil and gas holding


By The Jakarta Post
December 16, 2018

Economics

Chinese court grants Qualcomm an injunction against Apple

The injunction bans the sale of several models of IPhones in China. Qualcomm Inc on Monday said it had won a preliminary order from a Chinese court banning the importation and sale of several Apple Inc iPhone models in China that the court found violated two of Qualcomm’s patents. The preliminary order affects the iPhone 6S through the iPhone X. The ruling is from the Fuzhou Intermediate People’s Court in China, the same court that earlier this year banned the import of some memory chips by Micron Technology Inc into China. Qualcomm initially filed the case in China in late 2017. Apple is already disputing the scope of the ban, saying it only applies to iPhones that run on an older operating system. “Qualcomm’s effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world,” Apple said in a sta


By China Daily
December 12, 2018

Economics

China-US trade dispute enters second half

Despite a temporary truce in the trade war, much work still needs to be done. China and the United States reached a consensus to suspend tariff hikes and restart trade talks at the meeting between President Xi Jinping and his US counterpart Donald Trump in Argentina on Dec 1. Yet the Canadian police detained Meng Wanzhou, Huawei’s global chief financial officer, and could deport her to the United States where she could face charges for evading US curbs on trade with Iran. These contrasting signals show the complexity of China-US trade conflict, and since the conflict has reached a critical stage, four major changes can be expected. From a blitz to protracted standoff First, the trade conflict between the two largest economies has shifted from being a blitz to a stalemate. The first half of the game, which has stretched from March to November, can be seen as a fight for time


By China Daily
December 11, 2018