Friday saw Asian shares drop below their 10-year peak while Chinese stocks dropped to three-month lows. While global economic growth and increased corporate revenue have supported the Asian market, investors noted a fall in Chinese shares.
Japanese shares resumed on Friday after the Thanksgiving holiday, with the Nikkei 225 index showing reversed losses of a 0.12 percent increase at 22,550.85. Technology stocks were a mixed bag, however. Nintendo rose 3.55 percent, Softbank Group rebounded 1.4 percent, and Sharp was down 1.26 percent at the end of the day.
The Shanghai Composite index was stable at 3,353.57 after hitting a two-month low while Honk Kong’s Hang Seng index was up 0.6 percent at 29,872.31. The Shenzen Composite, however, shaved off 0.09 percent to end at 1,922.72, closing the week at 2.5 percent.
It was reported earlier this month that Chinese stocks had risen to 15 percent since their tumble in May which prompted many investors to sell their shares and lock their profits.
The Korean index, Kospi, was flat at 2,544.33 with tech company, Samsung, gaining 0.29 percent.
In Australia, the S&P/ASX 200 index lost 0.06 percent to close at 5,982.55. Its industrials and information technology sub-indexes fell 0.42 percent and 0.74 percent respectively at the end of the day.
Analysts believe that a combination of tighter regulation for online micro-lenders and firmer bond prices were the cause for the mixed results on Thursday.
“By all accounts, the market has got quite concerned about the recent rise in both government and corporate bond yields,” notes Chris Weston, chief strategist at IG in Melbourne.”… which certainly makes sense given Chinese corporates have to roll over close to $600 billion in debt that comes due in 2018,”
European shares are expected to remain the same after the Thanksgiving holiday in the US. The pan-European STOXX 600 index closed on Thursday with a 0.02 percent rise. France’s index rose 0.5 percent, and Britain’s FTSE 100 index was down 0.02 percent by the end of the day.
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