Asian Stock Market 2015
The trading in the Asian stock markets 2015 was finished with significant reduction against the backdrop of heightened concerns over growth prospects of the region’s largest economy - Chinese.
The Japanese Nikkei 225 index, Shanghai Composite index, Shenzhen stock exchange index and the Hong Kong's Hang Seng Index fell by 4.05% (to 16930.84), 2.02% (to 3038.14), 1.51% (to 1711.72) and 2.97% (to 20556.6) accordingly at the end of the trading.
Thus, the Japanese Nikkei 225 index broke below the psychologically important 17000 mark in points, and its closing level was the lowest since the 23d of January.
The Shanghai Composite index fell to the lowest mark in almost two weeks.
Investors continue to win back pessimism about weak statistics from China. So, yesterday it became known that the profits of industrial companies of China in August in annual terms fell by 8.8%, which is the biggest decline since October 2011. The PMI business activity index in industrial sector of Chinese economy in September showed the minimum for the last 6.5 years, totaling 47 points.
According to the Martin King, the weak profit performance of industrial companies in China continued to reinforce concerns about growth prospects of the economy. He also added, that many investors in Japan tend to take profit, to return cash and to pay attention to alternatives.
Director of UOB Kay Hian Director Steven Leung added that investors concerned about a strong slowdown of the Chinese economy, but the biggest risk now is not just the problem of China, but either the possibility of a recession in the world economy.
Asian Stock Market 2015: Tokyo stock exchange
At the Tokyo stock exchange, which is the largest one in Asian stock market 2015, today there was a landslide falling of quotations on the background of increasing concern about the future of China's economy.
"The market collapsed after the publication of the China statistical data evidenced that in August the income of industrial companies in the country fell by 8.8 per cent compared with the same month a year ago - said the expert SMBC Nikko Securities Inc. Chihiro Ota. - The slowdown in the Chinese economy becomes increasingly evident. It will have global implications, and that is the point, which investors are worried about."
"The income of Chinese industrial sector, published in Monday's data, experienced the biggest drop over the past four years in August, - says Tokyo Credit Agricole Corporate & Investment Bank analyst Yuji Saito. - This prompted investors to quick selling large amounts of shares, which rose significantly during the last week. One more negative factor was the scandal about the Volkswagen. The quality check of the vehicles can become distributed on the Japanese firms in the U.S. too. Still the consequences remain unclear."
Steel business was in the list of losers too. For example, Kobe Steel shares fell by 11.1% to reach ¥128. The crash occurred when this major steel manufacturer significantly lowered its annual profit forecast on Monday.
Manufacturers of non-ferrous metals were also among the outsiders came in amid reports on the fall of demand for their products in China. Shares of Toho Zinc fell by 7.5% to ¥283.