China stocks rebound, Nikkei extends sell-off

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The stocks on the Asian bourses traded mixed on Wednesday, with the Japanese markets extending the previous sell-off on weaker cues from the Wall Street and European equities and lower oil prices. While the Chinese stocks snap the recent downslide and rebound higher as markets absorb upbeat CPI figures.

    The consumer prices in the world’s second largest economy ticked higher in Nov, coming in at 1.5% y/y against 1.3% booked in Oct. Markets had predicted an increase of 1.4% for Nov.

    China stocks supported on weaker Yuan and upbeat CPI

    The Japanese markets extend the slide for the fourth consecutive session on the back of ongoing rout in oil prices which continues to weigh on the resource and energy stocks. While increasing demand for the yen against the greenback amid risk-off trades also drags exports’ stocks lower. USD/JPY drops -0.10% to 122.81 while the Japanese benchmark index, the Nikkei drops 0.75% to 19,339.

    The Australian and Chinese indices benefit from a weaker yuan after the PBOC depreciated the Chinese currency to the lowest levels since 2011. While a tad higher China’s CPI data also boosted sentiment somewhat. However, upside remains limited as markets view higher inflation in China as temporary and hence, China slowdown fears will to continue to persist.

    Australia’s S&P/ASX wavers above 5,100T, almost flat so far. While the benchmark Shanghai Composite (SSEC) rises 0.65% to 3,492. China’s A50 index gains 0.89% to 10,450 points. While Hong Kong’s, the Hang Seng trades -0.49% lower at 21,797.
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