Asia: China Index Remains Red
With a public holiday closing Hong Kong Friday and an unwinding yen carry trade, nothing could bring Asia's markets to settle into the green for the end of the week.
After spiking into positive territory midday, the Shanghai Composite Index fell back 7.24 points, or 0.1%, to 5.818.05, continuing the last two days' run of losses.
Shares in China Life Insurance (LFC) lost 0.5%, to 67.67 yuan in Chinese trading, while even Aluminum Corp of China (ACH), which hit a record high this week on strengthening commodity prices, slumped 1.1%, to 50.17 yuan.
"An apt metaphor to describe the current condition of the equity markets is perhaps someone lighting some dry wood with a match, then pouring on gasoline to make sure the fire keeps burning," writes Sean Darby in a report issued to Nomura's Asian clients earlier today.Most expect Chinese trading next week to follow a similar trend. Yesterday, strong trading in Chinese "H" shares, listed in Hong Kong, kept Asia's markets afloat as it was rumored that Beijing was considering introducing swaps, which allow mainland investors to buy the Hong Kong-listed companies. The announcement was met with skepticism by many Hong Kong investors. Today, the regulator denied considering such moves and said such speculation was a "misunderstanding." That will be bad news for the Hang Seng, and may be troublesome for U.S. exchange-traded funds invested there, like the iShares Hong Kong (EWH).
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV