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Wednesday, April 24, 2024
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Shanghai hit by IPO fears: Asian shares


Hong Kong: Asian markets mostly fell on Monday, with Tokyo hit by profit-taking, while Shanghai tumbled on expectations China will restart initial public offerings in the New Year, raising fears of a share glut.

Investors seemed broadly unmoved by upbeat figures showing Chinese manufacturing continuing to expand in November.

Tokyo ended flat, edging down 6.80 points, to 15,655.07, a second successive loss after hitting a near six-year high on Thursday. Sydney fell 0.76 per cent, or 40.5 points, to 5,279.5, its lowest close in seven weeks and Seoul lost 0.69 per cent, or 14.09 percent, to end at 2,030.78.

Shanghai lost 0.59 per cent, or 13.13 points, to 2,207.37 but Hong Kong was up 0.66 per cent, adding 157.26 points to 24,038.55, it’s highest since April 2011.

The banking giant said its China purchasing managers’ index (PMI) sat at 50.8 last month, which while down from 50.9 in October is much better than the 50.4 initially estimated on November 21.

Anything above 50 is considered growth and anything below indicates contraction.

Beijing at the weekend unveiled guidelines on changes to the way companies list as well as new rules that allow those already listed on the stock market to find new ways to raise cash.

Japan’s Nikkei fell for a second straight session after closing on Thursday at a near six-year high. The index saw further selling pressure as investors cashed in profits while the yen edged up against the dollar.

In afternoon trade the dollar fetched 102.56 yen, against 102.42 yen in New York Friday. The euro bought $1.3601 and 139.52 yen compared with $1.3590 and 139.18 yen.

On oil markets New York’s main contract, West Texas Intermediate for January delivery was up 43 cents at $93.15 in afternoon trade while Brent North Sea crude for January climbed 37 cents to $110.06.

Gold fetched $1,244.54 per ounce at 0831 GMT compared with $1,245.50 on Friday.

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