Continue reading Chinese sell-off spooks oil traders

Chinese sell-off spooks oil traders originally appeared on BloggingStocks on Mon, 31 Aug 2009 15:00:00 EST. Please see our terms for use of feeds.

Japan's Nikkei Index, the weighted average of 225 stocks in major companies, fell for the 10th day. That has not happened since 1965.

According to the FT, "Rising fears about the impact of inflation on slowing economies took their toll on Japanese and other Asia-Pacific markets." That sounds a bit like the current trouble in the US.

A number of other indicies have had sharp declines lately. The Shanghai Composite has fallen by more than half since late last year. Rising energy and food costs in China have not helped it. Neither have concerns that a recession in the West could cut demand for its exports.

The Nikkei news says two things. The first is that the economies in other large nations may be as troubled as that in the US. Traders often look out several quarters when they make their buying or selling decisions. But, the second, more ominous sign from the Nikkei's decline is that it says that the smart money in Japan believes that the price of oil is not likely to fall. Japan is relies more on imports of crude that the US does.

The tough run for the Nikkei is not restricted to Japan. US and EU markets are likely to set records of their own, and not the kind that traders look forward to.

Douglas A. McIntyre is an editor at 247wallst.com.

Nikkei hits longest losing streak in 40 years, is US next? originally appeared on BloggingStocks on Thu, 03 Jul 2008 13:41:00 EST. Please see our terms for use of feeds.

The Shanghai Composite moved up moved from 1,330 two years ago to over 6,100 last October. It was a dizzying rise. But, since its peak, the index has fallen to 3,300.

Investors who bet on the exchange have lost 45% of their money in a short time. Some of the key China stocks traded in the US have also dropped sharply. The shares of China search engine Baidu (NASDAQ: BIDU) hit a 52-week high of just over $429 and now trade at $273. The company still has a P/E of 105.

The Shanghai market has been dented for two reasons. First, if stock markets are leading indicators, investors in China are worried about rising inflation and falling exports to the US as the economy here slows. For a country where GDP rises 10% most years and inflation by almost as much, a share drop in growth could do huge damage to the China economy. According to The New York Times, "there are worries that a prolonged downturn could reverberate through China's financial markets."

Continue reading Shanghai market, darling of China, off 45%

Shanghai market, darling of China, off 45% originally appeared on BloggingStocks on Wed, 02 Apr 2008 12:24:00 EST. Please see our terms for use of feeds.

Most markets in Asia sold off sharply.

The Nikkei fell 4.5% to 12,992. Canon was down 5.2% to 4570 yen. Honda (NYSE:HMC) was down 5.8% to 3070. Toyota (NYSE:TM) was down 3.3% to 5560.

The Hang Seng dropped 3.1% to 23,585. China Netcom (NYSE:CN) fell 23.5 yuan. PetroChina (NYSE:PTR) fell 4.9% to 11.26.

The Shanghai Composite moved up 2.1% to 4,438.

Data from Reuters.

Douglas A. McIntyre is an editor at 247wallst.com.

Big drops in most Asian markets, Nikkei off 4.5% originally appeared on BloggingStocks on Mon, 03 Mar 2008 03:59:00 EST. Please see our terms for use of feeds.

Markets in Asia fell:

The Nikkei traded down 4% to 13,088. Sony (NYSE: SNE) fell 4.5% to 4,880. Toyota (NYSE: TM) fell 4.1% to 5,340.

The Hang Seng fell 4.3% 24,054. China Life (NYSE: LFC) fell 6.3% to 31.40. PetroChina (NYSE:PTR) fell 5.7% to 11.2.

The Shanghai Composite dropped 7.2% to 4,419.

Data from Reuters.

Douglas A. McIntyre is an editor at 247wallst.com.

Asia falls, Shanghai off over 7% (TM, SNE, LFC, PTR) originally appeared on BloggingStocks on Mon, 28 Jan 2008 04:14:00 EST. Please see our terms for use of feeds.

Markets in Asia took a beating as the Hong Kong Hang Seng fell 5%. Key China stocks moved down sharply. China Mobile (NYSE:CHL) fell 7%. China Petroleum (NYSE:SNP) fell over 10%.

The Shanghai Composite fell 2.5%.

Douglas A. McIntyre is an editor at 247wallst.com.

Flash: Asia markets pulled down as Hang Seng falls 5% originally appeared on BloggingStocks on Mon, 05 Nov 2007 03:59:00 EST. Please see our terms for use of feeds.

The Hang Seng rose 2% to 29,133. China Petroleum (NYSE: SNP) was up over 11%. Hang Seng Bank rose over 7%

The Shanghai Composite rose 2.5% to 5,913, a record.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Flash: Sharp rise in Asia markets, China Petroleum up over 11% originally appeared on BloggingStocks on Thu, 11 Oct 2007 05:32:00 EST. Please see our terms for use of feeds.

The Shanghai Composite is up 210% during the last year. Obviously, it is not a bad place for a company to list its stock. All the shares have to do is keep up with the index and everyone should be happy.

China's second largest bank, China Construction Bank, sees things that way. It will list on the Shanghai Stock Exchange, perhaps as early as this month. The financial company wants to raise $7.8 billion.

The bank already trades in Hong Kong, but "of the 44 shares that are listed on both the mainland and Hong Kong, the Shanghai shares trade at 46% premium to their Hong Kong counterparts," according to a report on MarketWatch. That does not make much sense, but its is certainly an incentive for Chinese stocks listed on the Hong Kong Hang Seng to list in Shanghai as well.

At some point IPOs of this size may be a challenge in China. The liquidity may not be there to fund them. But, right now, that days seems a long way off.

IPO for China Construction Bank originally appeared on BloggingStocks on Wed, 05 Sep 2007 12:50:00 EST. Please see our terms for use of feeds.

If a butterfly flaps its wings in Shanghai, does it cause a typhoon in New York? Today, The Associated Press reports, the Shanghai Composite Index fell 8.3% -- more of butterfly buzz. So will the U.S. market shrug it off like it did last week or plunge like it did in February?

In February, the Shanghai Composite fell 8.8% and the Dow plunged 416 points. But last Wednesday, the Shanghai Composite lost 6.8% and the Dow was up 184 points. The cause of the latest Shanghai Composite tumble is higher odds that the Chinese government will raise a trading tax. Last Wednesday it raised the stamp duty tax from 0.1% to 0.3%.

The reason for the Chinese government's move is to stop Chinese citizens from opening new accounts. But it's not working. More than 400,000 brokerage accounts were set up on May 30, exceeding this quarter's daily average of about 300,000. So investors fear that the Chinese government will raise the tax some more.

This has hit the Chinese market hard. According to TheStreet.com, the Shanghai Composite has lost 15% of its value in the last week -- still up 37% in 2007. But the U.S. does not seem to be panicking. Dow Jones Industrials futures are down 32 points and Nasdaq futures down 4 as of 7:30 a.m..

Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter.

Butterfly Buzz: Shanghai loses 8.3%. U.S. to decline originally appeared on BloggingStocks on Mon, 04 Jun 2007 08:45:00 EST. Please see our terms for use of feeds.