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 +0.21% 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 3,156.50, +6.75, +0.21%
/zigman2/quotes/206980083/delayed 601857 5.22, +0.03, +0.58%
/zigman2/quotes/202525815/delayed 601398 4.30, -0.02, -0.46%
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 +0.58%  inched 0.1% higher, while those of ICBC /zigman2/quotes/202525815/delayed CN:601398 -0.46% /zigman2/quotes/202401350/delayed IDCBY +2.59%  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 +0.22%  ending 0.1% lower.

Elsewhere, Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.37% ended down 0.8%, while South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.81% fell 0.2% and Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.46%  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 +0.0091% 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 +0.42%  planned layoffs and a cut in Wal-Mart Stores Inc.’s /zigman2/quotes/207374728/composite WMT -0.35% 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 +2.11%   /zigman2/quotes/207509062/delayed YAMHF -1.54% dropped 1.8%, Sharp Corp. /zigman2/quotes/203224600/delayed JP:6753 -0.41%   /zigman2/quotes/200401218/delayed SHCAY +0.88%  fell 1.9%, and construction-equipment maker Komatsu Ltd. /zigman2/quotes/204002437/delayed JP:6301 +0.76% /zigman2/quotes/206435044/delayed KMTUF +0.88% shed 2.4%.

Samsung Electronics Co. /zigman2/quotes/209800866/delayed KR:005930 +1.32%   /zigman2/quotes/202367843/delayed SSNLF -29.70%  lost 0.4%, and LG Electronics Co. /zigman2/quotes/209966407/delayed KR:066570 +4.37% 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 -0.34% /zigman2/quotes/203732563/delayed ANZBY +0.79%  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 +1.48% /zigman2/quotes/206026738/delayed NCMGF +2.51%  rose 4%, and Perseus Mining Ltd. /zigman2/quotes/205179925/delayed AU:PRU +0.68% soared 20% in Sydney, while Zijin Mining Group Co. /zigman2/quotes/204517000/delayed HK:2899 +0.20%   /zigman2/quotes/209836076/delayed ZIJMF +7.49%  rose 1.7% in Hong Kong, and Zhongjin Gold Corp. /zigman2/quotes/207741711/delayed CN:600489 -0.49% 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 -1.03%   /zigman2/quotes/206936121/delayed IPXHF +2.02%  adding 1.3%, and Japan Petroleum Exploration Co. /zigman2/quotes/201212147/delayed JP:1662 -0.58%  rising 2.6% in Tokyo.

Santos Ltd. /zigman2/quotes/207349564/delayed AU:STO +0.41%   /zigman2/quotes/207933640/delayed STOSF -1.20%  advanced 3.8% in Sydney after posting a 3% increase in its January-June net profit.

/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,156.50
+6.75 +0.21%
Volume: 22.33B
Nov. 30, 2022 12:39p
loading...
/zigman2/quotes/206980083/delayed
CN : China: Shanghai
¥ 5.22
+0.03 +0.58%
Volume: 59.66M
Nov. 30, 2022 11:30a
P/E Ratio
7.86
Dividend Yield
5.72%
Market Cap
¥893.30 billion
Rev. per Employee
¥6.22M
loading...
/zigman2/quotes/202525815/delayed
CN : China: Shanghai
¥ 4.30
-0.02 -0.46%
Volume: 183.41M
Nov. 30, 2022 11:30a
P/E Ratio
4.30
Dividend Yield
6.82%
Market Cap
¥1445.31 billion
Rev. per Employee
¥3.23M
loading...
/zigman2/quotes/202401350/delayed
US : U.S.: OTC
$ 9.91
+0.25 +2.59%
Volume: 390,924
Nov. 29, 2022 3:59p
P/E Ratio
3.19
Dividend Yield
7.44%
Market Cap
$200.73 billion
Rev. per Employee
$501,190
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
18,245.04
+40.36 +0.22%
Volume: 1.81M
Nov. 30, 2022 12:05p
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
27,924.67
-103.17 -0.37%
Volume: 0.00
Nov. 30, 2022 1:34p
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,453.07
+19.68 +0.81%
Volume: 375,762
Nov. 30, 2022 1:34p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,286.80
+33.50 +0.46%
Volume: 474,414
Nov. 30, 2022 3:34p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
33,852.53
+3.07 +0.0091%
Volume: 0.00
Nov. 29, 2022 5:31p
loading...
/zigman2/quotes/209509471/composite
US : U.S.: Nasdaq
$ 48.28
+0.20 +0.42%
Volume: 13.78M
Nov. 29, 2022 4:00p
P/E Ratio
17.45
Dividend Yield
3.15%
Market Cap
$197.52 billion
Rev. per Employee
$627,719
loading...
/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 152.97
-0.54 -0.35%
Volume: 4.61M
Nov. 29, 2022 4:00p
P/E Ratio
47.27
Dividend Yield
1.46%
Market Cap
$416.66 billion
Rev. per Employee
$260,918
loading...
/zigman2/quotes/208499076/delayed
JP : Japan: Tokyo
¥ 3,395.00
+70.00 +2.11%
Volume: 900,900
Nov. 30, 2022 1:33p
P/E Ratio
7.66
Dividend Yield
3.39%
Market Cap
¥1134.71 billion
Rev. per Employee
¥41.50M
loading...
/zigman2/quotes/207509062/delayed
US : U.S.: OTC
$ 23.58
-0.37 -1.54%
Volume: 20,000
Nov. 25, 2022 9:55a
P/E Ratio
6.77
Dividend Yield
N/A
Market Cap
$8.18 billion
Rev. per Employee
$332,042
loading...
/zigman2/quotes/203224600/delayed
JP : Japan: Tokyo
¥ 968.00
-4.00 -0.41%
Volume: 1.01M
Nov. 30, 2022 1:34p
P/E Ratio
13.95
Dividend Yield
4.13%
Market Cap
¥628.47 billion
Rev. per Employee
¥52.89M
loading...
/zigman2/quotes/200401218/delayed
US : U.S.: OTC
$ 1.71
+0.02 +0.88%
Volume: 13,781
Nov. 29, 2022 3:46p
P/E Ratio
11.37
Dividend Yield
2.74%
Market Cap
$4.53 billion
Rev. per Employee
$427,076
loading...
/zigman2/quotes/204002437/delayed
JP : Japan: Tokyo
¥ 3,164.00
+24.00 +0.76%
Volume: 1.51M
Nov. 30, 2022 1:34p
P/E Ratio
10.17
Dividend Yield
4.05%
Market Cap
¥2972.87 billion
Rev. per Employee
¥50.04M
loading...
/zigman2/quotes/206435044/delayed
US : U.S.: OTC
$ 22.80
+0.20 +0.88%
Volume: 1,044
Nov. 28, 2022 3:48p
P/E Ratio
9.14
Dividend Yield
N/A
Market Cap
$21.42 billion
Rev. per Employee
$402,733
loading...
/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
61,400.00
+800.00 +1.32%
Volume: 7.68M
Nov. 30, 2022 1:34p
P/E Ratio
9.96
Dividend Yield
2.35%
Market Cap
₩404042.71 billion
Rev. per Employee
₩2.72B
loading...
/zigman2/quotes/202367843/delayed
US : U.S.: OTC
$ 40.60
-17.15 -29.70%
Volume: 0.00
Sept. 27, 2022 3:18p
P/E Ratio
8.18
Dividend Yield
N/A
Market Cap
$255.71 billion
Rev. per Employee
$2.18M
loading...
/zigman2/quotes/209966407/delayed
KR : S. Korea: KRX
97,900.00
+4,100 +4.37%
Volume: 1.12M
Nov. 30, 2022 1:34p
P/E Ratio
11.15
Dividend Yield
0.87%
Market Cap
₩15944.56 billion
Rev. per Employee
₩2.27B
loading...
/zigman2/quotes/205482049/delayed
AU : Australia: Sydney
$ 24.83
-0.09 -0.34%
Volume: 4.43M
Nov. 30, 2022 3:34p
P/E Ratio
10.69
Dividend Yield
5.88%
Market Cap
$73.83 billion
Rev. per Employee
$738,953
loading...
/zigman2/quotes/203732563/delayed
US : U.S.: OTC
$ 16.59
+0.13 +0.79%
Volume: 65,141
Nov. 29, 2022 3:47p
P/E Ratio
10.03
Dividend Yield
5.69%
Market Cap
$49.40 billion
Rev. per Employee
$525,909
loading...
/zigman2/quotes/203840223/delayed
AU : Australia: Sydney
$ 19.92
+0.29 +1.48%
Volume: 1.91M
Nov. 30, 2022 3:34p
P/E Ratio
13.97
Dividend Yield
1.99%
Market Cap
$17.51 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206026738/delayed
US : U.S.: OTC
$ 13.06
+0.32 +2.51%
Volume: 5,019
Nov. 29, 2022 3:25p
P/E Ratio
12.66
Dividend Yield
2.11%
Market Cap
$11.72 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205179925/delayed
AU : Australia: Sydney
$ 2.23
+0.02 +0.68%
Volume: 2.55M
Nov. 30, 2022 3:34p
P/E Ratio
12.08
Dividend Yield
1.10%
Market Cap
$3.02 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204517000/delayed
HK : Hong Kong
$ 10.02
+0.02 +0.20%
Volume: 11.26M
Nov. 30, 2022 11:59a
P/E Ratio
10.43
Dividend Yield
2.32%
Market Cap
$270.03 billion
Rev. per Employee
$6.96M
loading...
/zigman2/quotes/209836076/delayed
US : U.S.: OTC
$ 1.29
+0.09 +7.49%
Volume: 29,600
Nov. 29, 2022 3:42p
P/E Ratio
10.50
Dividend Yield
N/A
Market Cap
$34.55 billion
Rev. per Employee
$890,133
loading...
/zigman2/quotes/207741711/delayed
CN : China: Shanghai
¥ 8.07
-0.04 -0.49%
Volume: 12.46M
Nov. 30, 2022 11:30a
P/E Ratio
19.30
Dividend Yield
2.78%
Market Cap
¥39.26 billion
Rev. per Employee
¥2.45M
loading...
/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 1,538.00
-16.00 -1.03%
Volume: 4.47M
Nov. 30, 2022 1:34p
P/E Ratio
6.07
Dividend Yield
3.90%
Market Cap
¥2038.24 billion
Rev. per Employee
¥656.60M
loading...
/zigman2/quotes/206936121/delayed
US : U.S.: OTC
$ 11.12
+0.22 +2.02%
Volume: 2,370
Nov. 29, 2022 3:41p
P/E Ratio
5.43
Dividend Yield
N/A
Market Cap
$14.69 billion
Rev. per Employee
$5.24M
loading...
/zigman2/quotes/201212147/delayed
JP : Japan: Tokyo
¥ 4,295.00
-25.00 -0.58%
Volume: 230,000
Nov. 30, 2022 1:31p
P/E Ratio
2.00
Dividend Yield
6.98%
Market Cap
¥225.31 billion
Rev. per Employee
¥153.82M
loading...
/zigman2/quotes/207349564/delayed
AU : Australia: Sydney
$ 7.36
+0.03 +0.41%
Volume: 8.18M
Nov. 30, 2022 3:34p
P/E Ratio
11.05
Dividend Yield
3.57%
Market Cap
$24.03 billion
Rev. per Employee
$2.38M
loading...
/zigman2/quotes/207933640/delayed
US : U.S.: OTC
$ 4.74
-0.06 -1.20%
Volume: 30,000
Nov. 21, 2022 11:10a
P/E Ratio
9.85
Dividend Yield
N/A
Market Cap
$16.47 billion
Rev. per Employee
$1.72M
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.