The Shanghai Stock Exchange Composite Index opened Wednesday’s trading session in a continuation of Tuesday’s 6% plunge.
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Japan’s Nikkei fell 0.2 percent. Hong Kong’s Hang Seng index was down 1.4 percent to 23,145.17.
U.S. stocks are opening lower as investors react to falling markets in Europe and Asia, and wait for clues about interest rates from the Federal Reserve.
“I don’t believe CSFC was set up to have a large balance sheet, and so after it had purchased shares back in early July to try [to] stabilise the market, it would eventually need to transfer those shares to an asset holder, and in this case, Central Huijin”, said Ken Wong, a China portfolio specialist at Eastspring Investments.
China’s wealthiest traders are withdrawing from the market, while a record drop in yuan positions at the central bank and financial institutions last month signaled investors are moving money out of the country. (CSF) to buy stocks on behalf of the government. Qantas Airways shares rallied 2.8 percent after the carrier announced a return to full-year profit on the back of a tough cost-cutting program and tailwinds from cheaper fuel costs.
Investors took cues from Wall Street, where all major indices closed almost 1% lower after the minutes of the Federal Reserve’s July policy meeting said that economic conditions for an interest rate hike were “approaching”.
But investors in Asia are also anxious about the volatility in China, Mr Aw noted, saying: “Although the Chinese government has moved to stabilise the yuan after the shock from the previous devaluation, people are still unsure where the currency will go”.
Shares in China and Hong Kong fell yesterday as the yuan eased against the dollar, reigniting fears that Beijing may be intent on a deeper devaluation of the currency despite the central bank’s comments that it sees no reason for a further slide. Brent crude, a benchmark for global oils used by many U.S. refineries, dipped 20 cents at $48.61 per barrel. It fell $1.85 to $41.27 on Wednesday.
Oil prices fell to a fresh six-year low overnight after data showed a surprise increase in U.S. stockpiles, adding to the glut of crude around the globe.
In the banking space, ANZ Banking, National Australia Bank, Westpac (WBK) and Commonwealth Bank are lower in a range of 0.8 percent to 1.6 percent.
– Malaysia’s main index gained 0.18 percent, or 2.84 points, to close on 1,582.44.
The Chinext Price Index, the benchmark for the small-capitalization market rose 2.7% to 2,571.
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The euro strengthened 0.1 per cent to $1.1038, snapping a four-day losing streak and the yen was little changed.
