TOKYO: Chinese stocks climbed Thursday on the report of corporate-finance deregulation in otherwise quiet Asian trading at the end of the year.
Shanghai Composite Index rose 3.4% to 3072.54, driven by financial stocks, following the announcement by China’s State Council Wednesday that it would scrap geographic restrictions for Chinese companies and commercial banks issuing yuan bonds abroad. The council also said it would make it easier for companies to offer shares, conduct mergers and acquisitions, and open branches overseas.
Bank of China Ltd. jumped 4.5% and Agricultural Bank of China Ltd. rose 4.1%.
Shanghai shares were also helped by the easing of concerns over the scarcity of cash at the end of the year.
“We expect the monetary authorities to take appropriate measures to stabilize money-market rates to meet the liquidity needs at end-2014,” UBS said.
The rest of Asian markets were mostly lower following a sharp run-up in recent days as strong U.S. data propelled Wall Street stocks to record highs.
Japan’s Nikkei Stock Average fell 0.3% to 17808.75, as many market participants took a break from trading in the holiday season. Taiwan shares declined 0.3% to 9158.70. Thailand’s SET Index is down 0.8% while Vietnam’s Index is 1.2% lower. Many exchanges were closed for national holidays, including the stock markets in Hong Kong, South Korea and Australia.
Crude oil prices are showing signs of stability after having dropped sharply over the past few weeks, which raised some concerns about the strength of emerging economies such as Russia. Light, sweet crude fell 2.2% Wednesday on The New York Mercantile Exchange.
Still, Eiji Kinouchi, senior strategist at Daiwa Securities, said lower oil prices could translate into better consumer spending during the holiday season in energy-importing nations.
“Once the sharp falls ease, worries will likely dissipate,” Mr. Kinouchi said.
Among individual stock movers on the Tokyo exchange, Japan Airlines Co. fell 4.0% following a Nikkei report that the Japanese government has decided to scrap from the end of March a corporate-tax waiver used by the airline.
Investors in Japanese stocks are also focusing on how the Japanese government will try to support the still-fragile economic recovery in the near term.
The previous low of 0.315% was set one day after the BOJ rolled out its large-scale easing on April, 2013.
shanghai shares start week with losses 25 june 2018
Hong Kong, (UrduPoint / Pakistan Point News - 25th Jun, 2018 ) :Hong Kong and mainland Chinese stocks fell on...
