China Market tumbles 1.8%

The Mainland China share market finished session lower on Thursday, 27 January 2022, as investors continued risk aversion selloff amid worried that the U.S. Federal Reserve would move aggressively to curb inflation and uncertainties ahead of the incoming Chinese New Year holidays.

Mainland Chinese markets will be shut for China's week-long Lunar New Year holiday, which starts Jan. 31.

The Federal Open Market Committee said a quarter-percentage point increase to its benchmark short-term borrowing rate is likely forthcoming it would be the Fed's first hike since December 2018. Fed Chair Jerome Powell indicated at a news conference that the U.S. central bank had "quite a bit of room to raise interest rates without threatening the labor market." Inflation stateside is running at its hottest level in nearly 40 years.

At close of trade, the benchmark Shanghai Composite Index declined 1.78%, or 61.42 points, to 3,394.25. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 2.87%, or 66.76 points, to 2,262.41. The blue-chip CSI300 index decreased 1.96%, or 92.43 points, to 4,619.88.

ECONOMIC NEWS: China Industrial Profits Increase 4.2% On Year In December- China's industrial profits increased 4.2% on a yearly basis in December, slower than the 9% rise in November, reports said citing data published by the National Bureau of Statistics on Thursday. Higher input costs increased operational cost of smaller firms. In the whole year of 2021, industrial profits advanced 34.3% from the last year, reports said.

CURRENCY NEWS: China's yuan fell against the dollar on thursday, after weaker mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3382 per dollar, weaker than the previous day fix 6.3246. The spot yuan CNY=CFXS fell roughly 0.6% against the dollar.

Powered by Capital Market - Live News