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5 Jan 2016
Asian stocks rebound as China stages solid comeback
FXStreet (Mumbai) - The stocks on the Asian bourses reversed early losses and swung back higher, tracking the recovery in the Chinese indices after the huge sell-off seen yesterday.
S&P/ASX bucks the trend
The Japanese stocks climbed higher in tandem with a minor-recovery in USD/JPY and rebounding Chinese equities, which offered some respite to the Asian traders after a horrible start to 2016. The local indices shrugged off overnight weakness on the Wall Street and staged a comeback as risk-on mode appears to seep back into markets. USD/JPY gains 0.12% to 119.60 and the Nikkei rises 0.41% to 18,527.
The Chinese equities rally today, reversing a part of the previous slump and thus, halting the rout after the Chinese central bank, the PBOC injected massive liquidity to the tune of 130bn Yuan in a bid to stabilize the Chinese stock markets. The benchmark Shanghai Composite (SSEC) erased over 3% initial slump and now trades 0.31% higher around 3,300 and Hong Kong’s, the Hang Seng trades flat at 21,305. While China’s A50 index rallies +1.03% to 10,204.
However, the Australian stocks ignored the recovery in the Chinese equities and extended losses, knocking-off the S&P/ASX down over 1% to 5,216. Markets remain wary over worries about the global economy and rising tensions in the Middle East and fell sharply following the weak lead overnight from overseas markets.
S&P/ASX bucks the trend
The Japanese stocks climbed higher in tandem with a minor-recovery in USD/JPY and rebounding Chinese equities, which offered some respite to the Asian traders after a horrible start to 2016. The local indices shrugged off overnight weakness on the Wall Street and staged a comeback as risk-on mode appears to seep back into markets. USD/JPY gains 0.12% to 119.60 and the Nikkei rises 0.41% to 18,527.
The Chinese equities rally today, reversing a part of the previous slump and thus, halting the rout after the Chinese central bank, the PBOC injected massive liquidity to the tune of 130bn Yuan in a bid to stabilize the Chinese stock markets. The benchmark Shanghai Composite (SSEC) erased over 3% initial slump and now trades 0.31% higher around 3,300 and Hong Kong’s, the Hang Seng trades flat at 21,305. While China’s A50 index rallies +1.03% to 10,204.
However, the Australian stocks ignored the recovery in the Chinese equities and extended losses, knocking-off the S&P/ASX down over 1% to 5,216. Markets remain wary over worries about the global economy and rising tensions in the Middle East and fell sharply following the weak lead overnight from overseas markets.