The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
Asian equities rally
On Monday, Asian equities managed to jump, with Chinese shares adding more than 1%. News that SoftBank Group Corp's domestic telecoms unit obtained approval to list on the Tokyo Stock Exchange attracted traders’ attention. The company’s initial public offering would be worth nearly 2.4 trillion yen, as follows from a regulatory filing, thus making this listing one of the most outstanding IPOs ever.
As a matter of fact, the Shanghai Composite index and the SZSE Component rallied by respectively 1.2% and 2.4% in China.
As for Alibaba Group, it reported a record 213.5 billion Yuan.
Besides this, in Hong Kong, smartphone and electronics manufacturer Xiaomi Corp rallied over 2% having posted firm sales during the event.
On Friday, the People’s Bank of China told that it’s going to change its policy because global outlook is getting worse and trade clashes with America are affecting the Chinese economy.
External conditions are currently facing profound changes. Moreover, downward pressures are intensifying, some businesses are having more difficulties in their operations, as the PBOC pointed out. China’s major financial institution will fine-tune and update its policies in compliance with the changing conditions.
The Hang Seng Index stood still sticking with 25,602.0 in Hong Kong.
Nikkei 225 headed north by 0.2% in Japan, while the KOSPI index dived by 0.3% in South Korea.
The equities of Samsung Biologics Co Ltd went down in the face of worries as for its accounting practices. What’s more, South Korean watchdogs were anticipated to offer a verdict on Wednesday on whether the company has broken rules that could end up with its delisting.
Besides this, the ASX 200 surged by 0.4% in Australia.
On Wednesday, Japan is expected to uncover its latest GDP, while China would come up with the latest figures on industrial output, retail sales as well as fixed asset investment.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
The British pound has increased in value over the course of the past week in line with an ongoing improvement in investor sentiment.
Economic activity in service sector in the Euro zone and the UK is on its lowest rates since 2009.
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