China stocks hit hard, rest of world shrugs

[jung41]

Chinese shares slumped 5 percent on Friday, hit by regulatory and industrial sector worries, but the declines did not carry through to other major equity markets, which ended modestly lower.

The Shanghai Composite index .SSEC and the CSI300 .CSI300 both registered their biggest one-day drops in more than three months on signs that the country's securities regulator was clamping down anew on leveraged buying. China also reported a 4.6 percent drop in profits among large industrial firms.

Major Wall Street averages were little changed in an abbreviated post-Thanksgiving session, as markets closed at 1 p.m. ET. Walt Disney Co (DIS.N) led media stocks lower after the company said late on Wednesday that its ESPN subscriber base fell 3 percent.

The Dow Jones industrial average .DJI fell 14.9 points, or 0.08 percent, to 17,798.49, the S&P 500 .SPX gained 1.24 points, or 0.06 percent, to 2,090.11 and the Nasdaq Composite .IXIC added 11.38 points, or 0.22 percent, to 5,127.53.

Europe ended slightly weaker. Britain's FTSE 100 .FTSE and France's CAC40 .FCHI lost 0.3 percent, and Germany's DAX .GDAXI ended down 0.2 percent. The pan-regional FTSEurofirst 300 dipped 0.3 percent.

The dollar set an eight-month high against a basket of currencies .DXY on speculation that both the Swiss National Bank and the European Central Bank will further cut deposit rates next week.

The Swiss franc CHF= fell to its lowest against the dollar since August 2010 and dropped more than 0.5 percent against the euro on speculation the Swiss National Bank will cut its rates even deeper into negative territory if the ECB moves.

China's offshore yuan, or renminbi, fell to more than a two-month low CNH=D3 of 6.4518. The onshore yuan was lower as well on concerns about growth and a lack of clarity to its expected weighting in the IMF's benchmark currency basket.

"There is clearly a risk that China will try and devalue the currency further," said Ankit Gheedia, equity and derivative strategist at BNP Paribas.

The slump in Shanghai stocks ended a 25-percent rebound rally since late August and contributed the lion's share of a 1.1 percent weekly drop in MSCI's broadest index of Asia-Pacific shares outside of Japan .MIAPJ0000PUS.

Spot yuan CNY=CFXS was changing hands at 6.3952, 56 pips weaker than the previous close and about 0.04 percent away from People's Bank of China's midpoint rate of 6.3915.

"It’s uncertain if the Chinese government is keen to show the market influence in their rate setting or whether now that they know they have gained special drawing rights inclusion they are keen to weaken their over-valued currency, knowing it will not jeopardize their case," Angus Nicholson, market analyst at IG in Melbourne, wrote in a note.

China stocks hit hard, rest of world shrugs| Reuters

 

[General Observer]

And here is the reason:

China stocks tumble as market crackdown widens - Nov. 27, 2015

 

[Viva_Viet]

TPP could be signed in feb, 2016. Thats the worst news for CN economy, CN stock. CN will lose million jobs in 2019.

 

[hexagonsnow]

WoW!what a tradgy for whole chinese!Incoming collapse will distroy the china economic soon.That is great chance for India and Viets.

 

[ganesh623]

Indian Sensex rises 170 points to close above 26,000, Nifty settles at 7,942.70

State Bank of India and ICICI Bank helped a gauge of lenders post its steepest jump in seven weeks


Mumbai: Indian stocks climbed, with the benchmark gauge completing a second weekly advance, amid optimism the government will push its proposal for a national sales tax through a parliamentary session that began on Thursday.

State Bank of India (SBI) and ICICI Bank Ltd helped a gauge of lenders post its steepest jump in seven weeks. Hindalco Industries Ltd, an aluminium producer, was the biggest advancer on the S&P BSE Sensex after an eastern Indian state said it may soon allow the company to resume mining bauxite. Gati Ltd extended the week’s rally to 16%, pacing gains among logistics firms amid optimism the unified tax bill will be cleared by lawmakers.

The S&P BSE Sensex added 0.7%, or 169.57 points, to 26,128.20. The gauge climbed as much as 0.9% intra-day on report that Prime Minister Narendra Modi has invited leaders of the main opposition Congress Party to discuss a compromise on passing a national sales tax, a proposal that’s been repeatedly blocked by opponents. The bill is his biggest move yet to push through one of India’s most important economic reforms since the 1990s.

The optimism on the Goods and Services Tax (GST) bill “has built up over the last few days,” Prasun Gajri, chief investment officer at HDFC Standard Life Insurance Co., said in an interview to Bloomberg TV India on Friday. “The market’s expectations from the parliamentary session are pretty low. So, if anything positive come out then that could be the trigger for the markets.”

Meanwhile, the Nifty index of the National Stock Exchange closed 0.75%, or 58.90 points, higher at 7,942.70.

Congress support

Modi needs Congress’s support to get the legislation approved in Parliament’s upper house, where his party is in minority. GST aims to whittle down more than a dozen state levies to create a single market among the country’s 1.3 billion people for the first time. Political opposition to Modi picked up steam after his Bharatiya Janata Party (BJP) lost state elections in Bihar this month, raising concern that his ability to push through reforms will be hampered.

SBI surged 3% to its highest level since 26 October. ICICI Bank climbed 2.3% to advance a third day this week, while Bank of Baroda soared 5.4%, the most since 27 August. Axis Bank Ltd added 1.2% to pare this year’s loss to 6%.

Gati jumped 4.1%. Gateway Distriparks Ltd increased to its highest price since 19 October. VRL Logistics Ltd extended this week’s gains to 7.5%. The stock has more than doubled since its listing on 30 April.

Global funds sold a net $40.3 million of local shares on 26 November, paring this year’s inflows to $3.63 billion. They’ve withdrawn $793 million this month.

The Sensex has fallen 5% this year and trades at 15.5 times projected 12-month earnings. The MSCI Emerging Markets Index is valued at a multiple of 11.1. Bloomberg

 

[General Observer]

Indian Sensex rises 170 points to close above 26,000, Nifty settles at 7,942.70

State Bank of India and ICICI Bank helped a gauge of lenders post its steepest jump in seven weeks


Mumbai: Indian stocks climbed, with the benchmark gauge completing a second weekly advance, amid optimism the government will push its proposal for a national sales tax through a parliamentary session that began on Thursday.

State Bank of India (SBI) and ICICI Bank Ltd helped a gauge of lenders post its steepest jump in seven weeks. Hindalco Industries Ltd, an aluminium producer, was the biggest advancer on the S&P BSE Sensex after an eastern Indian state said it may soon allow the company to resume mining bauxite. Gati Ltd extended the week’s rally to 16%, pacing gains among logistics firms amid optimism the unified tax bill will be cleared by lawmakers.

The S&P BSE Sensex added 0.7%, or 169.57 points, to 26,128.20. The gauge climbed as much as 0.9% intra-day on report that Prime Minister Narendra Modi has invited leaders of the main opposition Congress Party to discuss a compromise on passing a national sales tax, a proposal that’s been repeatedly blocked by opponents. The bill is his biggest move yet to push through one of India’s most important economic reforms since the 1990s.

The optimism on the Goods and Services Tax (GST) bill “has built up over the last few days,” Prasun Gajri, chief investment officer at HDFC Standard Life Insurance Co., said in an interview to Bloomberg TV India on Friday. “The market’s expectations from the parliamentary session are pretty low. So, if anything positive come out then that could be the trigger for the markets.”

Meanwhile, the Nifty index of the National Stock Exchange closed 0.75%, or 58.90 points, higher at 7,942.70.

Congress support

Modi needs Congress’s support to get the legislation approved in Parliament’s upper house, where his party is in minority. GST aims to whittle down more than a dozen state levies to create a single market among the country’s 1.3 billion people for the first time. Political opposition to Modi picked up steam after his Bharatiya Janata Party (BJP) lost state elections in Bihar this month, raising concern that his ability to push through reforms will be hampered.

SBI surged 3% to its highest level since 26 October. ICICI Bank climbed 2.3% to advance a third day this week, while Bank of Baroda soared 5.4%, the most since 27 August. Axis Bank Ltd added 1.2% to pare this year’s loss to 6%.

Gati jumped 4.1%. Gateway Distriparks Ltd increased to its highest price since 19 October. VRL Logistics Ltd extended this week’s gains to 7.5%. The stock has more than doubled since its listing on 30 April.

Global funds sold a net $40.3 million of local shares on 26 November, paring this year’s inflows to $3.63 billion. They’ve withdrawn $793 million this month.

The Sensex has fallen 5% this year and trades at 15.5 times projected 12-month earnings. The MSCI Emerging Markets Index is valued at a multiple of 11.1. Bloomberg

If you look at india's market YTD return, it is actually at a loss:



World Markets Ignore Shanghai Composite's 5.5% Drop on Black Friday - TheStreet

 

[tranquilium]

Meh, the crash earlier was way worse and it has very little impact on Chinese economy.

 

[Beidou2020]

Meh, the crash earlier was way worse and it has very little impact on Chinese economy.

That's not the point.

Chinese stock market is a disgrace. Its an embarrassment. It's a poorly developed market that has extreme swings both up and down.

For the world 2nd largest economy to have a casino pretending to be a stock market is shameful.

 

[Ind4Ever]

Waiting for some moron to point out to this as Auto correction of economy or Chinese own way of business and bulshi

 

[Kyle Sun]

Waiting for some moron to point out to this as Auto correction of economy or Chinese own way of business and bulshi

Well cn stock is more like gambling house.
it has very little.to do with real eco.

 

[Stannis Baratheon]

That's not the point.

Chinese stock market is a disgrace. Its an embarrassment. It's a poorly developed market that has extreme swings both up and down.

For the world 2nd largest economy to have a casino pretending to be a stock market is shameful.

That's one thing we have in common with China. This happens mostly due to corruption and syndicate along with little knowledge of the stock market and lack of trust in it (at least for us).

 

[INDIAISM]

In high volatile markets 5% fall in single session is not a big deal...Its just a one bad day in office....

 

[Saurabh jindals]

WoW!what a tradgy for whole chinese!Incoming collapse will distroy the china economic soon.That is great chance for India and Viets.

What happend to you why are you specifically naming India and Vietnam ?

That's not the point.

Chinese stock market is a disgrace. Its an embarrassment. It's a poorly developed market that has extreme swings both up and down.

For the world 2nd largest economy to have a casino pretending to be a stock market is shameful.

Stock Markets every where are casino.