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On Thursday, the dollar reached a two-month high as investor jitters over China’s sluggish economic recovery and the possibility that the Federal Reserve may possibly hike interest rates sent Asian stocks down to 9-month low.
MSCI’s largest index of Asia-Pacific equities outside of Japan fell to 495.03, its lowest level since November 29, before recovering some of its losses to close at 500.43, down 0.49%. For August, the index dropped almost 8%, which would be its worst monthly performance since September.
With German DAX futures down 0.55%, Euro Stoxx 50 futures down 0.51%, and FTSE futures down 0.35%, the gloomy mood in Europe is expected to continue.
On Thursday, the pan-European STOXX 600 (.STOXX) fell to a new low for the month as luxury firms exposed to Chinese consumer demand dragged on the index.
Recent economic figures have exposed the stalling post-pandemic recovery, sending China’s stock market into a tailspin. Investors are unsatisfied with policymakers’ actions so far and are calling for additional stimulus.
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China’s Economic Woes Deepen with Property Downturn
On Thursday, Hong Kong’s Hang Seng Index (.HSI) fell 0.12% after hitting a nearly nine-month low earlier in the session, while China’s blue-chip CSI 300 Index (.CSI300) was flat. Simply put, it takes some time.
Van der Linde claimed that there is little interest in investing in China. The relationship between that appetite and confidence is one that won’t shift too quickly. If we could provide some consumer stimulation, that would be fantastic.
The worsening property sector crisis is another concern for the second-largest economy in the world. According to a video of a meeting, Zhongzhi Enterprise Group on Thursday informed investors that it was experiencing liquidity difficulties and would be restructuring its debt.
The action was taken as a result of Zhongrong International Trust Co, a significant trust firm under Zhongzhi’s control, missing payments on numerous investment products since the end of July, according to people with knowledge of the market.
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Source: www.reuters.com
