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Nov. 21, 2012, 3:49 a.m. EST

Sharp rebound in Shanghai supports Asia markets

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By V. Phani Kumar and Michael Kitchen, MarketWatch

HONG KONG (MarketWatch) — A sharp and sudden rebound for Chinese stocks in afternoon trading boosted major Asian markets Wednesday, helping them overcome disappointment after Eurogroup leaders failed to agree on conditions to release the next tranche of financial aid to Greece.

The Shanghai Composite /zigman2/quotes/206600939/delayed CN:000001 -3.38% , which dropped below the psychologically-important 2,000-point level earlier in the session, bounced back to finish 1.1% higher at 2,030.32 on a wave of buying in the afternoon session.

“That is a sign that China will not let the A-share market to fall off the cliff,” said Francis Lun, managing director at Lyncean Holdings in Hong Kong. “I think the Chinese government must be watching the market closely... What they can do is to get the Social Security funds to buy shares.”

/zigman2/quotes/210598127/delayed SHCOMP 2,890.56, -100.76, -3.37%
Shanghai Composite
Four-year chart

The Shanghai index hasn’t seen a finish below 2,000 since the height of the global financial crisis in January 2009.

The recovery in Shanghai also helped some other regional markets pare losses or recover gains in the wake of news that the euro-zone’s financial ministers and the International Monetary Fund weren’t able to reach an agreement on the conditions under which they will disburse the next installment of financial aid to Greece.

The Eurogroup now plans to reconvene on Monday. Read: Eurogroup to meet again after no pact on Greek aid.

Japanese shares had let most of its early gains slip away and South Korean stocks reversed their advance following the Eurogroup’s announcement, around noon in Hong Kong. But they managed to recover somewhat.

The Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -4.01% ended 0.9% at 9,222.52 in Tokyo, after dropping as low as 9,161.21 during the session. Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -2.50% , up just 0.2% at the lunch break, finished 1.4% higher.

Elsewhere, South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -2.84%  fell 0.3%, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -3.28%  slipped 0.4% and Taiwan’s Taiex dropped 0.8%.

“Markets had been trading cautiously with the potential for an unfavorable outcome from the meeting keeping some investors at bay,” said Stan Shamu, a market strategist at IG Markets, adding that regional stocks had “lost their grip” following the news.

Gains in Shanghai were spread across sectors, with Shanghai Industrial Development Co. /zigman2/quotes/208864798/delayed CN:600748 -3.75%  jumping by the day’s 10% limit, shipping firm China Cosco Holdings Ltd. /zigman2/quotes/208833970/delayed CN:601919 -4.48% /zigman2/quotes/209913760/delayed CICOY +0.53%  rising 7.6% and Haitong Securities Co. /zigman2/quotes/203443667/delayed CN:600837 -5.76% gaining 3.6%.

In Hong Kong, China Construction Bank Corp. rose 3.4% and foods company Want Want China Holdings Ltd. /zigman2/quotes/203844092/delayed HK:151 -1.63%  gained 2.8%.

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Shares of heavyweight HSBC Holdings PLC /zigman2/quotes/202687335/delayed HK:5 -2.30% climbed 1.3%, after The Wall Street Journal reported that the lender was in talks with China’s sovereign-wealth fun to sell its stake in Ping An Insurance Group Co.

Ping An /zigman2/quotes/210315058/delayed HK:2318 -2.60% /zigman2/quotes/202212125/delayed PNGAY -1.47% , which had dropped in the last two trading sessions amid concerns about the possible sale, advanced 0.8%.

In Tokyo, exporters gained on the back of the yen’s recent weakness against major currencies. Toyota Motor Corp. /zigman2/quotes/203803129/delayed JP:7203 -4.56% /zigman2/quotes/200537742/composite TM -2.76%  climbed 2.3%, Tokyo Electron Ltd. /zigman2/quotes/202883609/delayed JP:8035 -5.42% /zigman2/quotes/200298228/delayed TOELF -2.60%  added 1.2% and industrial robot maker Fanuc Corp. /zigman2/quotes/209410825/delayed FANUY -4.75%   /zigman2/quotes/202054799/delayed JP:6954 -4.44%  rose 1%.

In data released 10 minutes ahead of the stock-market open, Japan’s Finance Ministry reported a 6.5% year-on-year drop in exports, fueled by another tumble in shipments to China, amid tensions between the two nations. Read: Japan trade deficit narrows by less than expected.

In Seoul, KB Financial Group Inc. /zigman2/quotes/208188987/delayed KR:105560 -1.65%   /zigman2/quotes/200043823/composite KB -1.09%  fell 1.6% and Hyundai Heavy Industries Co. /zigman2/quotes/206598861/delayed KR:009540 -3.26%  dropped 1%. In Taipei, Hon Hai Precision Industry Co. /zigman2/quotes/207256514/delayed TW:2317 -0.99% /zigman2/quotes/205366389/delayed HNHAF -1.78%  lost 0.9%, and Nanya Technology Corp. dropped 2.3%.

And in Sydney, an almost 3% drop in benchmark U.S. crude-oil futures overnight weighed on energy shares.

Woodside Petroleum Ltd. /zigman2/quotes/203437212/delayed AU:WPL -3.30%   /zigman2/quotes/206770672/delayed WOPEF -11.71%  lost 0.9% and Santos Ltd. /zigman2/quotes/207349564/delayed AU:STO -2.35%   /zigman2/quotes/207933640/delayed STOSF -1.04%  retreated 2.4%.

/zigman2/quotes/206600939/delayed
CN : China: Shenzhen
¥ 14.60
-0.51 -3.38%
Volume: 73.64M
Feb. 28, 2020 11:30a
P/E Ratio
10.44
Dividend Yield
1.49%
Market Cap
¥290.89 billion
Rev. per Employee
¥6.12M
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/zigman2/quotes/210597971/delayed
add Add to watchlist JP:100000018
JP : Nikkei
21,067.71
-880.52 -4.01%
Volume: 0.00
Feb. 28, 2020 1:36p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,108.28
-670.34 -2.50%
Volume: 1.28M
Feb. 28, 2020 12:05p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
1,996.62
-58.27 -2.84%
Volume: 457,506
Feb. 28, 2020 1:36p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,439.40
-218.50 -3.28%
Volume: 1.01M
Feb. 28, 2020 3:36p
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/zigman2/quotes/208864798/delayed
CN : China: Shanghai
¥ 5.14
-0.20 -3.75%
Volume: 17.27M
Feb. 28, 2020 11:30a
P/E Ratio
11.79
Dividend Yield
0.58%
Market Cap
¥10.27 billion
Rev. per Employee
¥1.33M
loading...
/zigman2/quotes/208833970/delayed
CN : China: Shanghai
¥ 4.05
-0.19 -4.48%
Volume: 24.79M
Feb. 28, 2020 11:30a
P/E Ratio
19.06
Dividend Yield
2.22%
Market Cap
¥52.72 billion
Rev. per Employee
¥4.85M
loading...
/zigman2/quotes/209913760/delayed
US : U.S.: OTC
$ 1.90
+0.01 +0.53%
Volume: 34.00
Feb. 26, 2020 5:20p
P/E Ratio
12.31
Dividend Yield
N/A
Market Cap
$890.82 million
Rev. per Employee
$738,176
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/zigman2/quotes/203443667/delayed
CN : China: Shanghai
¥ 14.24
-0.87 -5.76%
Volume: 112.97M
Feb. 28, 2020 11:30a
P/E Ratio
18.18
Dividend Yield
1.05%
Market Cap
¥175.52 billion
Rev. per Employee
¥2.67M
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/zigman2/quotes/203844092/delayed
HK : Hong Kong
HK$ 6.04
-0.10 -1.63%
Volume: 8.93M
Feb. 28, 2020 11:59a
P/E Ratio
17.68
Dividend Yield
3.96%
Market Cap
HK$75.24 billion
Rev. per Employee
N/A
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/zigman2/quotes/202687335/delayed
HK : Hong Kong
HK$ 53.15
-1.25 -2.30%
Volume: 37.08M
Feb. 28, 2020 11:59a
P/E Ratio
22.48
Dividend Yield
7.48%
Market Cap
HK$1129.44 billion
Rev. per Employee
HK$2.88M
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/zigman2/quotes/210315058/delayed
HK : Hong Kong
HK$ 86.05
-2.30 -2.60%
Volume: 24.65M
Feb. 28, 2020 11:59a
P/E Ratio
9.21
Dividend Yield
2.65%
Market Cap
HK$1607.24 billion
Rev. per Employee
HK$3.35M
loading...
/zigman2/quotes/202212125/delayed
US : U.S.: OTC
$ 22.23
-0.33 -1.47%
Volume: 252,033
Feb. 27, 2020 3:57p
P/E Ratio
9.41
Dividend Yield
2.02%
Market Cap
$84.01 billion
Rev. per Employee
$427,016
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/zigman2/quotes/203803129/delayed
JP : Japan: Tokyo
¥ 7,047.00
-337.00 -4.56%
Volume: 5.56M
Feb. 28, 2020 1:36p
P/E Ratio
8.15
Dividend Yield
3.12%
Market Cap
¥21330.90 billion
Rev. per Employee
¥81.43M
loading...
/zigman2/quotes/200537742/composite
US : U.S.: NYSE
$ 131.40
-3.73 -2.76%
Volume: 305,003
Feb. 27, 2020 6:30p
P/E Ratio
8.28
Dividend Yield
2.71%
Market Cap
$191.02 billion
Rev. per Employee
$737,463
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/zigman2/quotes/202883609/delayed
JP : Japan: Tokyo
¥ 22,350.00
-1,280 -5.42%
Volume: 1.31M
Feb. 28, 2020 1:36p
P/E Ratio
18.79
Dividend Yield
2.41%
Market Cap
¥3755.33 billion
Rev. per Employee
¥110.09M
loading...
/zigman2/quotes/200298228/delayed
US : U.S.: OTC
$ 220.13
-5.87 -2.60%
Volume: 200.00
Feb. 27, 2020 5:20p
P/E Ratio
20.18
Dividend Yield
N/A
Market Cap
$33.83 billion
Rev. per Employee
$997,844
loading...
/zigman2/quotes/209410825/delayed
US : U.S.: OTC
$ 16.44
-0.82 -4.75%
Volume: 358,063
Feb. 27, 2020 4:00p
P/E Ratio
42.23
Dividend Yield
2.14%
Market Cap
$33.40 billion
Rev. per Employee
$869,691
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/zigman2/quotes/202054799/delayed
JP : Japan: Tokyo
¥ 17,875.00
-830.00 -4.44%
Volume: 838,000
Feb. 28, 2020 1:36p
P/E Ratio
42.05
Dividend Yield
N/A
Market Cap
¥3693.13 billion
Rev. per Employee
¥95.87M
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/zigman2/quotes/208188987/delayed
KR : S. Korea: KRX
38,750.00
-650.00 -1.65%
Volume: 1.37M
Feb. 28, 2020 1:36p
P/E Ratio
5.15
Dividend Yield
5.70%
Market Cap
₩15125.30 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200043823/composite
US : U.S.: NYSE
$ 31.73
-0.35 -1.09%
Volume: 268,473
Feb. 27, 2020 6:30p
P/E Ratio
4.90
Dividend Yield
4.33%
Market Cap
$12.43 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206598861/delayed
KR : S. Korea: KRX
104,000
-3,500 -3.26%
Volume: 181,725
Feb. 28, 2020 1:36p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
₩7637.18 billion
Rev. per Employee
N/A
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/zigman2/quotes/207256514/delayed
TW : Taiwan
NT$ 80.30
-0.80 -0.99%
Volume: 53.38M
Feb. 27, 2020 1:30p
P/E Ratio
8.66
Dividend Yield
4.98%
Market Cap
NT$1124.17 billion
Rev. per Employee
NT$8.60M
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/zigman2/quotes/205366389/delayed
US : U.S.: OTC
$ 2.31
-0.04 -1.78%
Volume: 65,000
Feb. 27, 2020 5:20p
P/E Ratio
7.71
Dividend Yield
N/A
Market Cap
$32.00 billion
Rev. per Employee
$286,303
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/zigman2/quotes/203437212/delayed
AU : Australia: Sydney
$ 27.97
-0.96 -3.30%
Volume: 5.49M
Feb. 28, 2020 3:34p
P/E Ratio
54.10
Dividend Yield
4.95%
Market Cap
$27.74 billion
Rev. per Employee
$1.92M
loading...
/zigman2/quotes/206770672/delayed
US : U.S.: OTC
$ 20.25
-2.69 -11.71%
Volume: 2,195
Feb. 27, 2020 5:20p
P/E Ratio
55.10
Dividend Yield
4.49%
Market Cap
$18.15 billion
Rev. per Employee
$1.43M
loading...
/zigman2/quotes/207349564/delayed
AU : Australia: Sydney
$ 6.85
-0.17 -2.35%
Volume: 10.17M
Feb. 28, 2020 3:34p
P/E Ratio
14.85
Dividend Yield
2.44%
Market Cap
$14.94 billion
Rev. per Employee
$2.29M
loading...
/zigman2/quotes/207933640/delayed
US : U.S.: OTC
$ 4.74
-0.05 -1.04%
Volume: 75.00
Feb. 26, 2020 5:20p
P/E Ratio
14.77
Dividend Yield
N/A
Market Cap
$9.80 billion
Rev. per Employee
$1.71M
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Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau. Follow him on Twitter @MktwKumar. Michael Kitchen is Asia editor for MarketWatch and is based in Los Angeles.

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