Space For Rent

Space For Rent
Wednesday, August 19, 2015, Bhadra 4, 1422 BS, Zilqad 3, 1436 Hijr

Asian shares fall on China worries, Thai blasts
Published :Wednesday, 19 August, 2015,  Time : 12:00 AM  View Count : 14

HONG KONG, Aug 18: Asian shares fell Tuesday, with Shanghai hit by fears a pick-up in the property market will stymie government stimulus while a deadly blast in Bangkok sent Thai shares plunging.
The dollar headed higher against the euro, helped by improving confidence in the US housing sector ahead of the release of US central bank minutes.
Tokyo closed down 0.32 percent, or 65.79 points, at 20,554.47. Sydney fell 1.20 percent, or 64.55 points, to 5,303.10 and Seoul dipped 0.62 percent, or 12.26 points, to close at 1,956.26.
Shanghai slumped 5.09 percent in afternoon trade while Hong Kong shares dropped 0.63 percent.  Thai shares notched their steepest decline this year and the baht slid to its lowest level since 2009 after a bomb attack killed at least 20 people and injured scores in Bangkok.
Asian shares mostly rose in early trade, bolstered by gains on Wall Street and news that US homebuilder sentiment hit its highest level since the recession ended in 2009.
But news that new-home prices rose in 31 out of 70 Chinese cities in July, up from 27 the previous month, knocked shares as investors worried it meant Beijing will not unleash new stimulus to prop up sagging growth.
Fed in focus - The mixed data added to regional jitters about growth in China -- Asia's largest economy and a key driver of global growth -- which reached fever pitch last week after a shock devaluation of the yuan.
Last week's steep fall scared many investors into dropping Chinese assets and last week Shanghai and Hong Kong shares saw $531 million net outflows -- the ninth week of sales out of 10.
Even a pledge Friday by China's securities regulator to keep supporting equities, extending measures unleashed during a market crash in June, has not reassured dealers.
 Traders are selling now the market has broken the key 4,000-point level and that is unlikely to change "unless there are some catalysts such as further government support for equities," said Huaxi Securities analyst Wei Wei.
Markets are now awaiting the release of minutes from the Federal Reserve on Wednesday, which could shed light on the US central bank's timing for an interest rate rise.

Editor : Iqbal Sobhan Chowdhury
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