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China Market swings to gains

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The Mainland equity market closed higher in volatile trade on Friday, 12 October 2018, as investors chased for beaten down stocks after benchmark indices fell to four year lows on Thursday amid a global sell-off and as posted record trade surplus in September 2018. However, market gains were limited as investor sentiments remained low amid lingering anxiety over the Sino-U. S. trade war and rising U. S. interest rates. At closing bell, the benchmark Composite Index rebounded 0.91%, or 23.46 points, to 2,606.91, meanwhile the Index, which tracks stocks on China's second exchange, added 0.2%, or 2.45 points, to 1,296.36. The blue-chip CSI300 index rose 1.5%, or 46.62 points, to 3,170.73. So far this year, the stock index and the CSI300 dropped fell almost 21%. stocks declined 7.6% this month.

Chinese customs data showed that exports rose 14.5% from a year earlier in September 2018, well above August's 9.8% gain, while imports grew at 14.3% in September 2018 from 19.9% in August, resulting trade surplus of US$34.13 billion in September, surpassing the record of US$31.05 billion in August.

Market concerns about Chinese currency manipulation somewhat eased yesterday after reports staff had advised that was not manipulating the yuan - welcome news as the prepares a closely watched report on foreign currencies.

But China reported on Friday an unexpected acceleration in export growth in September and a record trade surplus with the United States, fanning concerns the already-heated trade spat could get uglier.

CURRENCY NEWS: China's yuan weakened against the U. S. dollar on Friday amid soft mid-point fixing by central and as unexpectedly strong China exports data renewed anxiety over the Sino-U. S. trade war. Prior to market open, the of China set the yuan mid-point at 6.9120, the weakest fixing since March 10, 2017 prior to trade on Friday.

OFFSHORE MARKET NEWS, US tumbled for a second straight day on Thursday, rattled by rising interest rates, signs of a slowdown in the global and the US-China trade dispute. The slumped 2.1% to 25,052.83, down 2.1% or 545 points. The broad-based also dropped 2.1% to 2,728.26, while the tech-rich Index fell 1.3% to 7,329.06.

European shares hit their lowest in more than 21 months on Thursday following a slide on Wall Street as jitters over rising yields and signs of slowing global growth prompted broad selling of risky assets. The German DAX Index slumped by 1.5%. The French Index and the U. K.'s Index both fell by 1.9%.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 12 2018. 16:45 IST
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