Nikkei Slides at Open after Holiday – China Extends Losing Streak
The Nikkei slid over 474 points (-2.65%) in mid afternoon trade today as the Japanese markets reopened after yesterdays public holiday, closing down 2.71%.
Yahoo Japan, Chugai Pharma, and Canon all saw stocks down over 1%. Sony, Toyota and Bridgestone were all trading up by over 1% in afternoon trade.
With current account data and bank lending both missing analysts expectations and still dealing with the fallout from China last week, the Nikkei is likely to see further drops unless key China data due tomorrow and Japanese machinery orders due Thursday exceed what’s expected.
The Shanghai composite saw further losses in morning trade, down over 5%, before recovering ans finishing up 0.21%. This leaves the SHCOMP down 12% for the year. Investors around the globe are spooked about what has recently happened in China, with today’s modest gains doing little to bolster confidence.
The HSI in Hong Kong saw marginal losses today, down 0.89% for the day. Companies with exposure to China and the wider region, including China Mobile, HSBC, and the Bank of China all saw stock prices drop.
Investors are holding their breath in anticipation of tomorrows import/export and balance of trade data from Beijing. If it fails to hit the mark, you can expect the selloff to extend tomorrow and possibly for the rest of the week.
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