Bulletin
Investor Alert

Asia Markets Archives | Email alerts

Aug. 16, 2013, 4:09 a.m. EDT

China stocks end lower after spike; Japan drops

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Shanghai Composite Index (SHCOMP)
  • X
    PetroChina Co. Ltd. A (601857)

or Cancel Already have a watchlist? Log In

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Most Asian markets fell Friday after another selloff on Wall Street amid worries the Federal Reserve would cut its stimulus, with mainland Chinese stocks finishing lower after witnessing a dramatic surge earlier in the day.

The Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +2.07% ended the day 0.6% lower at 2,068.45 after an extremely volatile session, during which it swung to a 5.6% jump from a 1% loss earlier in the day, before sliding back into losses.

Multiple traders and media accounts cited an unintended “fat finger” execution of a 7 billion yuan ($1.13 billion) order at a local brokerage as the cause for the sudden spike in Shanghai stocks. The Shanghai Stock Exchange Friday afternoon confirmed that the investment strategy department at Everbright Securities Co. had encountered a problem in its arbitrage system, according to a Xinhua news report.

“Chinese markets turned on a dime and went crazy, which was interesting just as everyone was settling into a quiet afternoon. ... The rumor and intrigue that centered on the move was huge, with dealers phoning around the houses trying to work out exactly what occurred,” said IG Markets chief markets strategist Chris Weston.

/zigman2/quotes/210598127/delayed SHCOMP 3,338.09, +67.65, +2.07%
/zigman2/quotes/206980083/delayed 601857 4.27, +0.04, +0.95%
/zigman2/quotes/202525815/delayed 601398 4.98, +0.04, +0.81%
Percentage changes in Friday's trade
Shanghai Composite Vs. PetroChina and ICBC shares

“Whatever the outcome, these sorts of moves do not help confidence,” he said.

The surge in the Shanghai index had coincided with a flare-up in shares of several companies, including the two largest stocks on the bourse by capitalization — PetroChina Co. and Industrial & Commercial Bank of China Ltd. Both stocks briefly rose around 10%, before also giving up those gains.

The Shanghai-listed shares of PetroChina /zigman2/quotes/206980083/delayed CN:601857 +0.95% /zigman2/quotes/205108732/composite PTR -1.22%  inched 0.1% higher, while those of ICBC /zigman2/quotes/202525815/delayed CN:601398 +0.81% /zigman2/quotes/202401350/composite IDCBY -0.41%  ended unchanged from Thursday’s closing level.

KGI Asia Chief Operating Officer Ben Kwong said the resilience of stocks in Hong Kong and Shanghai came as investors looked for better investment opportunities after the recent sell-off in U.S. markets.

“Hong Kong and Shanghai have pretty much been left behind, and had previously underperformed because of [worries about] the economic slowdown and the debt problems. But recent data is pointing to stabilization. That’s why funds are looking for an excuse to get into these markets for higher returns,” Kwong said.

Other regional markets also came off their highs, with Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.47%  ending 0.1% lower.

Elsewhere, Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK +0.18% ended down 0.8%, while South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.26% fell 0.2% and Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.32%  dropped 0.8%. Taiwan’s Taiex ended the day 0.5% higher.


Reuters Enlarge Image
Worries Fed will soon reduce its monetary stimulus weigh on Asian stocks.

New Zealand stocks fell, meanwhile, following reports that a powerful earthquake had rocked the country. The NZX 50 dropped 0.4% as trading resumed after a temporary halt.

The Shanghai Composite ended the week 0.8% higher despite Friday’s losses, while the Hang Seng Index was among the region’s best weekly performers with a 3.3% gain. Also posting weekly gains, South Korea’s Kospi added 2.1%, Australia’s S&P/ASX 200 climbed 1.2% and the Nikkei Stock Average edged 0.3% higher.

Friday’s broad losses in Asia came after the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.88% tumbled 225 points overnight for its second consecutive triple-digit fall, following a jump in Treasury yields. Cisco Systems Inc.’s /zigman2/quotes/209509471/composite CSCO -1.39%  planned layoffs and a cut in Wal-Mart Stores Inc.’s /zigman2/quotes/207374728/composite WMT -1.02% forecasts also weighed on the Dow industrials.

Shares of several firms that have a significant international exposure fell across the region.

In Tokyo, Yamaha Motor Co. /zigman2/quotes/208499076/delayed JP:7272 -0.31%   /zigman2/quotes/207509062/composite YAMHF -1.57% dropped 1.8%, Sharp Corp. /zigman2/quotes/203224600/delayed JP:6753 +1.88%   /zigman2/quotes/200401218/composite SHCAY +0.96%  fell 1.9%, and construction-equipment maker Komatsu Ltd. /zigman2/quotes/204002437/delayed JP:6301 +0.77% /zigman2/quotes/206435044/composite KMTUF +0.14% shed 2.4%.

Samsung Electronics Co. /zigman2/quotes/209800866/delayed KR:005930 -0.34%   /zigman2/quotes/202367843/composite SSNLF 0.00%  lost 0.4%, and LG Electronics Co. /zigman2/quotes/209966407/delayed KR:066570 -0.77% gave up 1.9% in Seoul, while in Sydney, sportswear firm Billabong International Ltd.  finished 3.6% lower.

Click to Play

Stocks and bonds take a tumble

Stephen Wood of Russel Investments discusses the down day in the U.S. markets.

Also losing ground in Sydney, Australia & New Zealand Banking Group /zigman2/quotes/205482049/delayed AU:ANZ -1.44% /zigman2/quotes/203732563/composite ANZBY -1.89%  fell 3% after the bank said margins in its Asian business were likely to fall in the second half of the fiscal year through September, due to lower interest rates.

However, gold miners advanced after precious-metal futures jumped overnight in the U.S.

Newcrest Mining Ltd. /zigman2/quotes/203840223/delayed AU:NCM +0.18% /zigman2/quotes/206026738/composite NCMGF +1.17%  rose 4%, and Perseus Mining Ltd. /zigman2/quotes/205179925/delayed AU:PRU +3.30% soared 20% in Sydney, while Zijin Mining Group Co. /zigman2/quotes/204517000/delayed HK:2899 +6.10%   /zigman2/quotes/209836076/composite ZIJMF +4.08%  rose 1.7% in Hong Kong, and Zhongjin Gold Corp. /zigman2/quotes/207741711/delayed CN:600489 +1.89% added 1.3% in Shanghai.

Several energy shares also outperformed after crude-oil prices climbed in the U.S., with Inpex Corp. /zigman2/quotes/206689846/delayed JP:1605 -0.15%   /zigman2/quotes/206936121/composite IPXHF -5.64%  adding 1.3%, and Japan Petroleum Exploration Co. /zigman2/quotes/201212147/delayed JP:1662 -1.16%  rising 2.6% in Tokyo.

Santos Ltd. /zigman2/quotes/207349564/delayed AU:STO -0.38%   /zigman2/quotes/207933640/composite STOSF -0.48%  advanced 3.8% in Sydney after posting a 3% increase in its January-June net profit.

/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,338.09
+67.65 +2.07%
Volume: 25.63B
Sept. 18, 2020 3:01p
loading...
/zigman2/quotes/206980083/delayed
CN : China: Shanghai
¥ 4.27
+0.04 +0.95%
Volume: 90.20M
Sept. 18, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
3.04%
Market Cap
¥737.78 billion
Rev. per Employee
¥4.49M
loading...
/zigman2/quotes/205108732/composite
US : U.S.: NYSE
$ 32.30
-0.40 -1.22%
Volume: 148,145
Sept. 18, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
5.07%
Market Cap
$109.16 billion
Rev. per Employee
$678,384
loading...
/zigman2/quotes/202525815/delayed
CN : China: Shanghai
¥ 4.98
+0.04 +0.81%
Volume: 260.73M
Sept. 18, 2020 3:00p
P/E Ratio
5.64
Dividend Yield
5.28%
Market Cap
¥1664.36 billion
Rev. per Employee
¥2.53M
loading...
/zigman2/quotes/202401350/composite
US : U.S.: OTC
$ 10.89
-0.05 -0.41%
Volume: 77,234
Sept. 18, 2020 3:57p
P/E Ratio
3.98
Dividend Yield
5.67%
Market Cap
$246.25 billion
Rev. per Employee
$387,287
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
24,455.41
+114.56 +0.47%
Volume: 2.30M
Sept. 18, 2020 4:09p
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
23,360.30
+40.93 +0.18%
Volume: 0.00
Sept. 18, 2020 3:15p
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,412.40
+6.23 +0.26%
Volume: 756,516
Sept. 18, 2020 3:32p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,864.50
-18.70 -0.32%
Volume: 1.51M
Sept. 18, 2020 5:05p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,657.42
-244.56 -0.88%
Volume: 703.89M
Sept. 18, 2020 5:15p
loading...
/zigman2/quotes/209509471/composite
US : U.S.: Nasdaq
$ 39.81
-0.56 -1.39%
Volume: 44.45M
Sept. 18, 2020 4:00p
P/E Ratio
15.13
Dividend Yield
3.62%
Market Cap
$168.53 billion
Rev. per Employee
$684,933
loading...
/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 135.29
-1.40 -1.02%
Volume: 18.24M
Sept. 18, 2020 4:00p
P/E Ratio
21.56
Dividend Yield
1.60%
Market Cap
$383.38 billion
Rev. per Employee
$223,654
loading...
/zigman2/quotes/208499076/delayed
JP : Japan: Tokyo
¥ 1,594.00
-5.00 -0.31%
Volume: 2.08M
Sept. 18, 2020 3:00p
P/E Ratio
26.79
Dividend Yield
0.94%
Market Cap
¥557.00 billion
Rev. per Employee
¥31.23M
loading...
/zigman2/quotes/207509062/composite
US : U.S.: OTC
$ 15.06
-0.24 -1.57%
Volume: 134.00
Sept. 18, 2020 11:06a
P/E Ratio
27.33
Dividend Yield
N/A
Market Cap
$5.34 billion
Rev. per Employee
$282,748
loading...
/zigman2/quotes/203224600/delayed
JP : Japan: Tokyo
¥ 1,353.00
+25.00 +1.88%
Volume: 1.74M
Sept. 18, 2020 3:00p
P/E Ratio
55.67
Dividend Yield
1.33%
Market Cap
¥826.47 billion
Rev. per Employee
¥50.23M
loading...
/zigman2/quotes/200401218/composite
US : U.S.: OTC
$ 3.15
+0.03 +0.96%
Volume: 22,603
Sept. 18, 2020 3:51p
P/E Ratio
55.07
Dividend Yield
0.84%
Market Cap
$7.92 billion
Rev. per Employee
$454,670
loading...
/zigman2/quotes/204002437/delayed
JP : Japan: Tokyo
¥ 2,413.00
+18.50 +0.77%
Volume: 3.12M
Sept. 18, 2020 3:00p
P/E Ratio
18.60
Dividend Yield
1.49%
Market Cap
¥2280.20 billion
Rev. per Employee
¥45.51M
loading...
/zigman2/quotes/206435044/composite
US : U.S.: OTC
$ 22.23
+0.03 +0.14%
Volume: 0.00
Sept. 16, 2020 5:20p
P/E Ratio
18.52
Dividend Yield
N/A
Market Cap
$21.23 billion
Rev. per Employee
$412,180
loading...
/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
59,300.00
-200.00 -0.34%
Volume: 18.88M
Sept. 18, 2020 3:30p
P/E Ratio
18.55
Dividend Yield
2.39%
Market Cap
₩395893.08 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202367843/composite
US : U.S.: OTC
$ 44.20
0.00 0.00%
Volume: 0.00
Sept. 4, 2020 5:20p
P/E Ratio
16.54
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
N/A
loading...
/zigman2/quotes/209966407/delayed
KR : S. Korea: KRX
89,900.00
-700.00 -0.77%
Volume: 931,059
Sept. 18, 2020 3:30p
P/E Ratio
35.92
Dividend Yield
0.83%
Market Cap
₩15224.06 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205482049/delayed
AU : Australia: Sydney
$ 17.07
-0.25 -1.44%
Volume: 15.16M
Sept. 18, 2020 4:10p
P/E Ratio
11.67
Dividend Yield
8.18%
Market Cap
$48.33 billion
Rev. per Employee
$908,476
loading...
/zigman2/quotes/203732563/composite
US : U.S.: OTC
$ 12.43
-0.24 -1.89%
Volume: 54,249
Sept. 18, 2020 3:51p
P/E Ratio
12.42
Dividend Yield
5.70%
Market Cap
$35.31 billion
Rev. per Employee
$690,358
loading...
/zigman2/quotes/203840223/delayed
AU : Australia: Sydney
$ 32.81
+0.06 +0.18%
Volume: 9.01M
Sept. 18, 2020 4:10p
P/E Ratio
26.31
Dividend Yield
0.74%
Market Cap
$26.70 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206026738/composite
US : U.S.: OTC
$ 24.19
+0.28 +1.17%
Volume: 15.00
Sept. 18, 2020 5:20p
P/E Ratio
29.11
Dividend Yield
N/A
Market Cap
$19.51 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205179925/delayed
AU : Australia: Sydney
$ 1.57
+0.05 +3.30%
Volume: 21.31M
Sept. 18, 2020 4:10p
P/E Ratio
19.86
Dividend Yield
N/A
Market Cap
$1.84 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204517000/delayed
HK : Hong Kong
HK$ 5.91
+0.34 +6.10%
Volume: 61.27M
Sept. 18, 2020 4:09p
P/E Ratio
26.81
Dividend Yield
1.85%
Market Cap
HK$192.23 billion
Rev. per Employee
HK$6.84M
loading...
/zigman2/quotes/209836076/composite
US : U.S.: OTC
$ 0.75
+0.03 +4.08%
Volume: 46,700
Sept. 18, 2020 3:24p
P/E Ratio
26.48
Dividend Yield
N/A
Market Cap
$24.80 billion
Rev. per Employee
$872,997
loading...
/zigman2/quotes/207741711/delayed
CN : China: Shanghai
¥ 10.80
+0.20 +1.89%
Volume: 37.95M
Sept. 18, 2020 3:00p
P/E Ratio
70.40
Dividend Yield
0.18%
Market Cap
¥52.35 billion
Rev. per Employee
¥1.20M
loading...
/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 601.90
-0.90 -0.15%
Volume: 10.58M
Sept. 18, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
3.99%
Market Cap
¥878.90 billion
Rev. per Employee
¥291.81M
loading...
/zigman2/quotes/206936121/composite
US : U.S.: OTC
$ 6.19
-0.37 -5.64%
Volume: 0.00
Aug. 26, 2020 11:41a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$9.33 billion
Rev. per Employee
$2.64M
loading...
/zigman2/quotes/201212147/delayed
JP : Japan: Tokyo
¥ 1,782.00
-21.00 -1.16%
Volume: 870,200
Sept. 18, 2020 3:00p
P/E Ratio
12.23
Dividend Yield
2.81%
Market Cap
¥101.85 billion
Rev. per Employee
¥156.48M
loading...
/zigman2/quotes/207349564/delayed
AU : Australia: Sydney
$ 5.22
-0.02 -0.38%
Volume: 11.79M
Sept. 18, 2020 4:10p
P/E Ratio
N/A
Dividend Yield
1.86%
Market Cap
$10.85 billion
Rev. per Employee
$2.29M
loading...
/zigman2/quotes/207933640/composite
US : U.S.: OTC
$ 3.75
-0.02 -0.48%
Volume: 0.00
Sept. 15, 2020 1:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$7.72 billion
Rev. per Employee
$1.71M
loading...

Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau. Follow him on Twitter @MktwKumar.

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.