Exchange the Asia-Pacific region are trading in red zone amid fears over China’s economy

Exchange the Asia-Pacific region are trading in red zone amid fears over China’s economy


As at 07.59 GMT index of the Shanghai stock exchange fell by 2,4%, the index of the Shenzhen exchange fell 3.5%, the Hang Seng Index — on 2,45%.

MOSCOW, 11 Jan. Stock markets in the Asia-Pacific region (APR) show a negative trend in the first day of the week on the backdrop of strong fears of investors about the status of the largest economy in the region — China — and the continuing fall in oil prices, according to AFP.

As at 07.59 GMT the index of Shanghai stock exchange Shanghai Composite fell 2.4% to 3109,95 points, the index of Shenzhen stock exchange Shenzhen Composite index fell 3.5%, to 1909,42 points, Hong Kong Hang Seng Index — on 2,45%, to 19952,63 item. Korean KOSPI was down by 0.66%, reaching 1905,06 item. The Australian S&P/ASX 200 decreased on 1,31%, to 4925,6 item.

Exchange of Japan were closed on Monday due to the celebration of the national holiday — Day of age. On Friday, the Japanese Nikkei 225 ended the day lower by 0.39 per cent, to 17697,96 item.

Investors ‘ concerns about the state of the Chinese economy intensified after the people’s Bank of China weakened the yuan against the dollar in the first week of 2016, more than 1.5%, the largest change in the rate of the national currency of the PRC from August 2015, when the deflation of the yuan the strongest effect on global stock markets. On Friday, Chinese Central Bank set the yuan exchange rate against the dollar at around 6,5636 with 6,5646 yuan a day earlier that over the past 9 trading days was the first reference strengthening of the Renminbi against the dollar.

However, market participants are pessimistic, believing that China will allow the yuan to decline further, in an effort to support exporters and to remain competitive against regional rivals. “After significant changes of the Renminbi last week most of the stocks in the Asian region are still under a lot of pressure”, — quotes Reuters the words of one analyst at Guodu Securities in Beijing Setsuna Xiao (Xiao Shijun).

Price dynamics of the oil market also continues to determine the course of trading on world stock exchanges, including exchanges in the Asia-Pacific region. Fears for the continuing oversupply do not let investors, causing oil prices have fallen. As at 07.59 the March futures price for North sea petroleum mix of mark Brent fell by 1.03% to 33.2 per dollar per barrel. The price of February futures for oil of mark WTI fell on 2,01% — to 32.5 dollars per barrel.