Asian Shares Decline On China Property Woes, Fed Uncertainty

RTTNews | 665 days ago
Asian Shares Decline On China Property Woes, Fed Uncertainty

(RTTNews) - Asian stocks fell sharply on Monday as concerns mounted around Country Garden, a major property developer in China which is now on the brink of default.

China's new bank loans tumbled in July and other key credit gauges also weakened, deepening investor concerns about the health of the world's second largest economy and sending the yuan to a six-week low.

A spike in the dollar index and bond yields also spurred risk aversion after Friday's stronger-than-expected producer price data from the United States stoked concerns about the possibility of U.S. interest rates rising further.

Oil prices were down around 1 percent in Asian trade as China demand concerns overshadowed signs of escalating geopolitical tensions in the Black Sea.

Chinese shares edged lower as leading property developer Country Garden faced a potential bankruptcy that could shake the stuttering Chinese economy.

China's benchmark Shanghai Composite index dropped 0.34 percent to 3,178.43 while Hong Kong's Hang Seng index slumped 1.58 percent to 18,773.55 ahead of Chinese retail sales, industrial output and investment data due on Tuesday.

Country Garden Holdings shares plummeted 16.3 percent in Hong Kong after the company missed bond payments and warned of multibillion-dollar losses.

The company risks defaulting in September if it still cannot pay after a 30-day grace period.

Japanese shares tumbled as investors awaited direction from second quarter gross domestic product data due on Tuesday and inflation data on Friday.

The Nikkei average fell 1.27 percent to 32,059.91 and the broader Topix index settled 0.98 percent lower at 2,280.89, with chip, energy, airline and auto stocks pacing the declines.

Ship and machinery maker Mitsui E&S Co slumped 8.3 percent to lead losses while Nippon Sheet Glass soared 10.6 percent. Advantest lost 3.2 percent and Inpex Corp plunged 4.8 percent.

Seoul stocks fell for a third day running, with big-cap tech and battery companies leading losses on concerns about rising inflationary pressure in the United States. The Kospi average closed 0.79 percent lower at 2,570.87.

Australian shares hit a four-week low as miners tumbled on concerns over China's property sector and heightened concerns about the country's economic recovery.

The benchmark S&P/ASX 200 index fell 0.86 percent to 7,277 - marking its biggest drop since July 11. The broader All Ordinaries index closed 0.81 percent lower at 7,493.10. BHP, Rio Tinto and Fortescue Metals Group all ended down around 2 percent. Across the Tasman, New Zealand's benchmark S&P/NZX 50 index finished marginally lower at 11,826.42 ahead of Reserve Bank's rate decision due on Wednesday.

Economists expect the central bank to keep the overnight cash rate steady at a more than 14-year high of 5.50 percent for a second straight meeting.

U.S. stocks ended narrowly mixed on Friday and Treasury yields rose after data showed producer prices rose more than expected in July while consumer confidence dropped for the first time in 14 months, raising much uncertainty about the outlook for inflation and interest rates.

The producer price index rose 0.3 percent from the previous month following a revised unchanged reading in June and expectations for a reading of 0.2 percent.

The annual rate of producer price growth reaccelerated to 0.8 percent from just 0.2 percent in June, as cost of services increased.

The tech-heavy Nasdaq Composite gave up 0.6 percent to reach its lowest closing level in well over a month and the S&P inched down 0.1 percent while the Dow rose 0.3 percent.

read more
Canadian Market Up Marginally In Cautious Trade

Canadian Market Up Marginally In Cautious Trade

After a flat start and a subsequent drop to lower levels, the Canadian market emerged into positive territory about an hour past noon on Monday, but remains somewhat subdued with investors seeming reluctant to make significant moves. The mood is cautious as investors await U.S. - China trade talks in London.
RTTNews | 35 minutes ago
European Stocks Close Weak After Cautious Session

European Stocks Close Weak After Cautious Session

European markets settled lower on Monday after a subdued performance as investors awaited the outcome of U.S.-China high-level trade talks in London. Also, a lack of regional economic data and earnings news contributed to the cautious mood in the markets.
RTTNews | 1h 3min ago
FDA, CDC Probe Salmonella Outbreak As Around 1.70 Mln Dozen Brown Eggs Recalled

FDA, CDC Probe Salmonella Outbreak As Around 1.70 Mln Dozen Brown Eggs Recalled

The U.S. Food and Drug Administration and the Centers for Disease Control and Prevention or CDC are investigating a Salmonella Enteritidis outbreak linked to brown eggs that sickened nearly 79 across 7 states. Associated with the ongoing probe, August Egg Co. recalled around 1.70 million dozen brown cage-free and brown certified organic eggs sold through Walmart and other retail locations.
RTTNews | 4h 50min ago
Bay Street May Open Slightly Higher

Bay Street May Open Slightly Higher

Canadian shares may open slightly higher on Monday amid optimism about some positive progress in U.S.-China trade talks. Energy stocks are likely to find some support on higher crude oil prices.. The U.S.-China discussions will aim to resolve some major trade disputes between the two major economies.
RTTNews | 6h 42min ago
FTSE 100 Down Marginally At Noon

FTSE 100 Down Marginally At Noon

The U.K. market is down marginally at noon on Monday with investors mostly making cautious moves amid a lack of triggers. The focus is on trade talks between the U.S. and Chinese officials in London. Weak Chinese exports data weighs on sentiment.
RTTNews | 7h 53min ago
CAC 40 Down Slightly In Lackluster Trade

CAC 40 Down Slightly In Lackluster Trade

French stocks are down slightly in lackluster trade on Monday with investors refraining from making significant moves as they await the high-level trade talks between U.S. and Chinese officials in London later in the day.
RTTNews | 8h 15min ago
DAX Down Over 0.5% In Cautious Trade

DAX Down Over 0.5% In Cautious Trade

German stocks are down in negative territory on Monday as investors make cautious moves while awaiting crucial talks between U.S. and Chinese officials in London later in the day. The discussions will aim to resolve some major trade disputes between the two major economies. Treasury Secretary Scott Bessent leads the U.S. delegation in the high-level trade talks.
RTTNews | 8h 35min ago