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Market turmoil: Asian stocks soar despite Japan shrinking 1.4% - live

Discussion in 'Market News' started by Lily, Feb 15, 2016.

  1. Lily

    Lily Forum Member

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    It’s a big day in finance as China reopens after the new year break and publishes trade figures, while Japan has revealed GDp shrank more than expected. Follow the action with Martin Farrer.

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    1.12am GMT

    Welcome to the Guardian business live blog from Sydney. They say a week can be a long time in politics (I think it was Harold Wilson the former British prime minister, who coined the phrase), and the same could also be said for the markets. During last week’s ferocious selling, it looked like China’s markets had dodged a bullet by being closed for the long new year break. Japan had its worst week since 2008 and oil hit a new low.

    But today things look rosier. Despite a dismal set of GDP figures, markets around the region have soared on the back of a strong session on Wall Street on Friday and higher oil prices. But the big factor could prove to be comments from China’s central bank governor, Zhou Xiaochuan, who at the weekend ruled out any depreciation of the yuan for the foreseeable future.

    China may be positively influenced by the rally on Friday and the fact Japan looks to have turned a corner.

    The likelihood of a sharp one-off interventionist devaluation in the [yuan] is remote, bordering on never. [Zhou] did leave the option to allow a gradual depreciation in the [yuan] but, in short, the fear around a Chinese intervention should dissipate.

    The bigger question is: Will it last?

    Continue reading...
     

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