Asian stocks mostly down, China woes continue
Asian stocks were down again on Tuesday, following on from Mondays catastrophic session in which the Shanghai Composite index suffered its biggest single day decline in 48 months. China has now undertaken measures in an attempt to open “curb” so-called underground lending, however investors are now concerned that this may also curb the economic growth of one of the world’s financial powerhouses.
The People’s Bank of China have intentionally allowed lending rates to skyrocket, to drive rogue lenders and their practices out of business. However the higher lending rates are expected to also stunt the growth of new businesses and those seeking to expand, damaging the underlying economy.
The Shanghai Composite Index slid to 1958.62, a decline of 0.2 percent, after battling back from an earlier decline of more than 3.5 percent. The Hang Seng also declined by 0.2 percent, closing at 19,780.12 as it also came back from significant declines during early trading. Japan’s Nikkei 225 fell by 93.44 points to close at 12,969.34, a decline of 0.72 percent. During early trading on the Nikkei 225 had actually fallen as low as 12,758.22 shortly after 2 PM local time.
The Japanese index was propped up by the manufacturing and export sectors, with Mitsui Engineering & Shipbuilding Co Ltd leading the index on a percentage basis was an advance of 2.88 percent. Dai-ichi Life Insurance Co Ltd offered the biggest price shift of the day with an advance of 800 points, or 0.6 percent, closing the day at 133,600. Fast Retailing Co Ltd advanced by 200 points, or 0.66 percent, closing at 30,500.
The biggest decline of the day was from Sumco Corp which saw its stocks dropped by 5.62 percent, or 60 points, to close at 1007.