Shanghai shares end wild week down 8%


Shanghai – Chinese shares ended the week almost 8% lower after volatile trading that started on Monday with shock losses and spread fear to global markets.

On Friday, the mainland’s benchmark Shanghai Composite closed up 4.8% at 3,232 points.

China’s second bourse, the Shenzhen Composite, closed up 5.4% to 1,846 points, but ended the week 9.4% lower.

Other stock markets in Asia also continued their rebound, helped by a strong finish for US shares.

Japan’s benchmark Nikkei 225 closed up 3% at 19,136 points, but the Hang Seng index in Hong Kong reversed earlier gains to close down 1%.

The Hang Seng ended the week 3.6% lower – its sixth consecutive weekly fall.

Dominic Chan, analyst at GF Securities in Hong Kong, said: “Investor confidence remains shaky. Some took profit as they think the rally is not sustainable.”

Angus Nicholson, an IG Markets analyst, said investors remained concerned about China and when the Federal Reserve will raise US interest rates.

In London, the FTSE 100 also turned negative, after initially rising, to be down slightly at 6,186 points.

The rise in Tokyo extended the previous day’s recovery for Asia’s largest stock market after its sharp losses earlier this week.

Investors were also digesting new data showing that Japanese inflation fell back to zero in July, raising speculation that the central bank would launch a fresh round of stimulus.

In Sydney, the ASX 200 finished 0.6% higher at 5,263 points.

Marking the end of a week of corporate results, the supermarket Woolworths reported a 12.5% drop in full-year profit – its first fall in almost two decades.

However, Woolworths’ shares closed 1.5% higher after the retailer announced a new chief executive in a bid to revive its fortunes.

South Korea’s Kospi index finished 1.6% higher at 1,937 points.

The recovery across Asia took its cue partly from China’s recovery, but also the strong sentiment from the US.

Shares on Wall Street rose overnight and oil prices jumped sharply after revised figures showed the US economy expanded far more than originally thought in the three months to June.-

Categorized | Business

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