Southeast Asian shares bounce back – China, Japan extend drop

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Asia stock traderVolatile stock markets in Asia¬†on August 25 showed signs of a respite from the recent blood-letting, as bargain hunters helped most stocks off three-year lows hit on fears that China’s economy was risking a hard landing.

However, Chinese shares continued their slump, and Japan’s Nikkei followed.

The Shanghai composite index declined 7.5 per cent to 2,970.29. The index is now below the psychologically important 3,000 level. China’s smaller Shenzhen composite index¬†also saw sharp declines, falling over 7 per cent.

The Tokyo market also fell sharply after earlier rebounding. The benchmark Nikkei 225 index reversed early gains before falling nearly 4 per cent. That followed a 4.6 per cent plunge on August 24 to the lowest level seen since late February.

But most Southeast Asian stock markets rebounded on August 25, helped by bargain hunting and share buyback plans of some companies, with Indonesian benchmark recovering from over one-and-a-half-year low, but concerns over China’s economy limited further gains.

The Jakarta composite index rose nearly 2 per cent, regaining some of the 4 per cent fall to the lowest close since December 2013 on the previous day. State-controlled firms such as Telekomunikasi Indonesia and Bank Mandiri led the rebound after a cabinet minister said state-owned enterprises are repurchasing their shares.

The Thai SET index was up 0.4 per cent after volatile trading. Some large-caps and energy shares such as PTT Exploration and Production fell amid further routs in US stocks and drop in oil prices overnight. Shares of PTT Global Chemical jumped 6 per cent following a share buyback plan, a day after its stock hit an all-time closing low. Broker Maybank Kim Eng Securities expected more listed firms to buy back shares as prices are now undervalued.

Singapore’s Straight Times Index climbed 1.8 per cent, with shares in top three lenders, including DBS Group Holdings, rising after sharp falls the day before.

The indexes of Malaysia and Vietnam both rebounded from an early slide to new multi-year lows. The Philippines’ benchmark stock index was a tad 0.09 per cent lower after touching a 16-month low in early trading.

Meanwhile, a relief rally is spreading across Europe after markets opened on August 25. France’s CAC40 was the biggest riser in Europe, up 2 per cent today with most European bourses comfortable gaining over 1 per cent in the first hour of trading.

 

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Reading Time: 2 minutes

Volatile stock markets in Asia¬†on August 25 showed signs of a respite from the recent blood-letting, as bargain hunters helped most stocks off three-year lows hit on fears that China’s economy was risking a hard landing.

Reading Time: 2 minutes

Asia stock traderVolatile stock markets in Asia¬†on August 25 showed signs of a respite from the recent blood-letting, as bargain hunters helped most stocks off three-year lows hit on fears that China’s economy was risking a hard landing.

However, Chinese shares continued their slump, and Japan’s Nikkei followed.

The Shanghai composite index declined 7.5 per cent to 2,970.29. The index is now below the psychologically important 3,000 level. China’s smaller Shenzhen composite index¬†also saw sharp declines, falling over 7 per cent.

The Tokyo market also fell sharply after earlier rebounding. The benchmark Nikkei 225 index reversed early gains before falling nearly 4 per cent. That followed a 4.6 per cent plunge on August 24 to the lowest level seen since late February.

But most Southeast Asian stock markets rebounded on August 25, helped by bargain hunting and share buyback plans of some companies, with Indonesian benchmark recovering from over one-and-a-half-year low, but concerns over China’s economy limited further gains.

The Jakarta composite index rose nearly 2 per cent, regaining some of the 4 per cent fall to the lowest close since December 2013 on the previous day. State-controlled firms such as Telekomunikasi Indonesia and Bank Mandiri led the rebound after a cabinet minister said state-owned enterprises are repurchasing their shares.

The Thai SET index was up 0.4 per cent after volatile trading. Some large-caps and energy shares such as PTT Exploration and Production fell amid further routs in US stocks and drop in oil prices overnight. Shares of PTT Global Chemical jumped 6 per cent following a share buyback plan, a day after its stock hit an all-time closing low. Broker Maybank Kim Eng Securities expected more listed firms to buy back shares as prices are now undervalued.

Singapore’s Straight Times Index climbed 1.8 per cent, with shares in top three lenders, including DBS Group Holdings, rising after sharp falls the day before.

The indexes of Malaysia and Vietnam both rebounded from an early slide to new multi-year lows. The Philippines’ benchmark stock index was a tad 0.09 per cent lower after touching a 16-month low in early trading.

Meanwhile, a relief rally is spreading across Europe after markets opened on August 25. France’s CAC40 was the biggest riser in Europe, up 2 per cent today with most European bourses comfortable gaining over 1 per cent in the first hour of trading.

 

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