Chinese stocks slide again
Japanese shares continued a downward
slide in early trading on Thursday
[EPA]
China's main stock index fell more than 3 per cent in early trade
on Thursday, hit by renewed selling in blue chips, after it had
rallied slightly in the previous session.
The Shanghai Composite Index was down 3.03 per cent at 2,793.858
points after 25 minutes of trade.
In Japan, the Nikkei continued to slide in early trade on
Thursday.
Elsewhere in the Asia-Pacific, bourses were tracking Wall Street's
slight gains, but Japanese investors were taking a cautious tack,
saying Wednesday's rebound fell short of expectations.
By late morning, the Nikkei had fallen 0.63 per cent, extending
losses from Wednesday's sell-off.
Not enough
Renji Motohashi, general manager of the equity department at Shinko
Securities, said Wall Street bounced back "but not as much as
investors had hoped".
"Concerns about a US recession are causing investors to sell
exporters and manufacturers"
Renji Motohashi, Shinko Securities
"Concerns about a US recession are causing investors to sell
exporters and manufacturers," he said.
Wall Street shares regained some lost ground on Wednesday, ending
higher a day after a global rout on equity markets unleashed the
worst downturn in US stocks since the aftermath of the September
11, 2001, attacks.
The Dow Jones Industrial Average closed up 0.43 per cent at
12,268.63 while the tech-laden Nasdaq composite finished up 0.34
per cent at 2,416.13.
Ben Bernanke, the US Federal Reserve chairman, told US legislators
that his economic outlook was unchanged and that financial markets
were functioning "well".
Chinese connection
The Shanghai index had plunged 8.84 per cent on Tuesday, its
biggest drop in a decade, before rebounding 3.9 per cent on
Wednesday.
Many analysts and fund managers believe Chinese authorities, who
plan to list a string of big firms on the stock market this year,
will not permit a collapse of the market.
Many newly-established mutual funds in China also remain keen to
buy non-financial shares.
In Singapore, shares opened higher on Thursday, reversing two days
of sharp losses. The Straits Times Index opened 0.96 per cent
higher at 3,133.88.
The index, which until Monday had risen more than 41 per cent since
July, fell a total of 6.25 per cent over Tuesday and Wednesday in
line with the heavy global slump.
In Australia, the S&P/ASX 200 index rose 0.4 per cent to
5,854.0 by 9am on Thursday after posting its biggest one-day
percentage fall since September 17, 2001 the previous day.
New Zealand's benchmark NZX-50 Index also nudged higher, rising 0.1
per cent to 4,040.54.