China’s main stock index remained relatively resilient through the volatility that followed the yuan’s devaluation, though it’s still down 23% from its mid-June high.
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U.S. stocks are rising in morning trading Monday as China’s currency steadied and Greece’s bailout cleared another big hurdle.
The Shanghai gauge climbed 14 per cent from its July 8 low through Monday amid unprecedented state intervention following a $US4 trillion rout.
The Shanghai Composite Index fell away steeply at the end to close on 3,748.16, down 6.15 per cent or 245.51 points. Wall Street was headed for a subdued open, with both Dow futures and the broader S&P 500 futures down 0.2 percent.
China Vanke, the country’s largest property developer, said on Monday that the housing market is slowly emerging from a year-long slump, but it will take time to see a full recovery. The dollar traded at 124.47 yen, up slightly from late U.S. levels.
The greenback got a lift at the end of last week from encouraging data on US producer prices and industrial output that helped support the case for the Federal Reserve hiking interest rates at its monetary meeting in September. Brent crude, a benchmark for global oils used by many U.S. refineries, fell 58 cents to $48.61 in London.
The Shanghai Composite closed up 0.7% at 3993.67 as government funds continued to stabilize that market. Malaysian stocks suffered a 1.5 percent fall and the ringgit was stuck near a 17-year low.
Prices of oil plummeted to six year troughs and negatively affected the export reliant economies of the region.
The dollar index against a basket of currencies held firm after three days of gains to stand at 96.842, off one-month low of 95.926 hit last Wednesday following China’s surprise devaluation of the yuan.
Meanwhile, Tokyo shares rose 0.35 percent after news Japan’s economy shrank a lower-than-expected 0.4 percent in the April-June quarter and 1.6 percent from a year ago.
Credit Suisse analysts, citing initial estimates from local media, said that the two explosions in the Chinese port of Tianjin last week that killed more than 100 people could generate total insurance losses of $1 billion to 1.5 billion.
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Top-traded Universal Robina Corp. lost 1.05 percent to 188 pesos, while BDO Unibank ended 3.01 percent down to 99.90 pesos.
