shanghai leads asia stocks down further volatility tipped
Last Updated : GMT 10:30:02
Arab Today, arab today
Arab Today, arab today

Shanghai leads Asia stocks down, further volatility tipped

Arab Today, arab today

Arab Today, arab today Shanghai leads Asia stocks down, further volatility tipped

Shanghai stocks
Hong Kong - AFP

Chinese stocks tumbled again on Monday, leading Asian bourses lower as uncertainty over US interest rates revived fears of a broader global economic slowdown that has rocked financial markets.

Analysts warned of further gyrations following a rollercoaster ride last week, with investors shifting into safe-haven assets such as the yen and gold, while oil sagged.

Shanghai sank 2.61 percent in the morning. The index plunged more than 16 percent from Monday to Wednesday before bouncing 10 percent in the next two sessions.

The rebound came after Beijing cut the cost of borrowing -- its fifth interest rate reduction since November -- in a bid to pump up the country's economy, which is a key driver of global growth.

Other regional indexes followed suit after enjoying healthy gains on Friday. Hong Kong lost 0.41 percent, Tokyo fell 1.05 percent and Sydney was 1.11 percent lower while Seoul shed 0.49 percent.

The extreme swings in China -- which has seen Shanghai lose about 40 percent since hitting a June 12 high -- have fuelled concerns that Beijing is struggling to get a grip on its economic slowdown.

Analysts say China needs to rebalance its economy so that it relies more on consumer demand and less on lavish state spending.

A successful transition is seen as crucial for the worldwide economy.

On Friday, credit rating agency Moody's slashed its 2016 growth forecast for leading G20 economies to 2.8 percent from 3.1 percent, predicting contractions in Brazil and Russia and lower demand for manufactured goods in Korea and Japan due to problems in China.

Comments from US Federal Reserve Vice Chairman Stanley Fischer at the weekend that left open the possibility of a September hike in interest rates have added to nervousness.

The historically low US interest rates of recent years have fuelled investment in global stock markets because they have made it cheap to borrow money for speculation.

A rise would likely tamp down that appetite.

-'Difficult for the Fed' -

In a speech at a conference on monetary policy in Jackson Hole, Wyoming, the Fed's number two said the bank will not wait for US inflation to hit two percent before tightening policy.

"The change in the circumstances which began with the Chinese devaluation is relatively new and we are still watching how it unfolds. So I wouldn't want to go ahead and decide right now," he later said in a CNBC interview.

Nader Naeimi, head of dynamic asset allocation at AMP Capital Investors in Sydney, told Bloomberg News: "We are going to continue to see volatility.

"The Fed is aware of the market volatility and you wouldn't have thought they would be raising rates into market turmoil.

"But at the same time, data coming out of the US has been surprisingly resilient and strong. It's very difficult for the Fed."

Traders, fearing further losses, switched into safer investments. The dollar fell to 121.18 yen, from 121.52 yen in New York, while gold traded at $1,134.52, against $1,127.82 late Friday.

Both the precious metal and the Japanese currency are seen as safe bets in times of turmoil as they tend to hold their value.

Oil prices turned lower after enjoying their best week in years.

Oil is a key indicator of demand and has taken a hit from concerns about China, the world's largest energy user, as well as a global oversupply and a strong dollar.

US benchmark West Texas Intermediate for October eased 71 cents to $44.51 while Brent crude fell 88 cents to $49.17.

Last week saw WTI gain 11 percent, its strongest weekly increase in four and a half years, after the contract slid Monday to its lowest close in six and a half years. Brent was up about 10 percent, its best gain since 2009.

arabstoday
arabstoday

GMT 14:54 2017 Sunday ,19 November

Bahrain Bourse daily trading performance

GMT 03:16 2017 Saturday ,18 November

Asian markets head for positive end to volatile week

GMT 11:57 2017 Friday ,17 November

US stocks boosted by solid Wal-Mart, Cisco earnings

GMT 06:51 2017 Friday ,17 November

Bahrain Bourse daily trading performance

GMT 03:57 2017 Thursday ,16 November

Stock markets retreat as oil slides

GMT 15:05 2017 Wednesday ,15 November

Bahrain Bourse daily trading performance

GMT 02:47 2017 Wednesday ,15 November

Asian markets down as fears grow for US tax reform

GMT 19:56 2017 Tuesday ,14 November

Bahrain Bourse daily trading performance
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

shanghai leads asia stocks down further volatility tipped shanghai leads asia stocks down further volatility tipped

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

shanghai leads asia stocks down further volatility tipped shanghai leads asia stocks down further volatility tipped

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday