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China stocks advance, rest of Asia in the red

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - Mixed sentiment prevailed on the Asian bourses, with most major regional indices trading deep in the red while the Chinese equities stabilized somewhat after wild ride witnessed so far this week.

    Risk-off dominates Asian markets

    The Japanese stocks fell sharply into losses on the backed of rising demand for the safe-haven yen amid another bout of risk-aversion that hit markets after another Yuan devaluation by the Chinese central bank today. The PBOC set Yuan midpoint at 6.5314 on Wednesday, the weakest since April 2011. USD/JPY hovers near fresh multi-month lows of 118.35, down -0.40% on the day, while the Nikkei sinks -1.21% to 18,151.

    Further, the Australian stocks also followed suit and extended losses as the ongoing market turmoil triggered by China’s latest move also weighed on investors’ sentiment. The S&P/ASX 200 index tanks -1.23% to 5,120 points. Moreover, disappointing China’s Caixin services PMI report also added to the lingering China slowdown concerns and collaborated to the downside in the index.

    On the other hand, PBOC yuan devaluation help the Chinese indices to stabilize and in fact are seen rising so far this Wednesday. Moreover, China stocks also received fresh impetus after the Shanghai Securities News reported that China will keep in effect its ban on share sales by listed companies' major shareholders until the government publishes new rules on such share disposals.

    The benchmark Shanghai Composite (SSEC) jumps 1.17% higher around 3,320 and Shenzhen’s CSI300 rallies 0.73% to 3,504 points.
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