Asian share markets selling off in the New Year

by Chris Becker

It hasn’t taken long for the red button to be pushed with force by traders across the region, despite a holiday in Japan, with the Hong Kong Hang Seng Index gapping down 2% at the open:

This takes it straight back to the Xmas lows and threatens the December lows too. The ASX200 was recovering after an 0.5% gap down on the open, but has now sold off into the lunch break, off by more than 0.7% to just above 5600 points. The Shanghai Composite is also down nearly 1% as well.

The slew of Chinese second-tier data today could be the cause, with the Caixin PMI Index coming in way lower than expected (50.2 was consensus) at 49.7 (below 50 is considered a contraction):

But most likely its the lack of direction from overseas markets and further tight liquidity. The Aussie dollar is taking a battering, almost breaking the 70 handle:

Fun or dangerous depending on your point of view…

 

 

Comments

  1. ” The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already sustained significant declines. By the end ….stock markets had fallen in Hong Kong (45.5%), Australia (41.8%), Spain (31%), the United Kingdom (26.45%), the United States (22.68%) and Canada (22.5%). New Zealand’s market was hit especially hard, falling about 60% from its peak.”

    1987, of course. Now that’s not going to happen again….

    • Yes but if you read to the end it says Berejklians calls to reduce immigration is dog whistling and makes the false claim that there has been no increase in migration. It then quotes some “expert” saying migration to the city needs to be increased to save Sydney! What a joke

    • What’s the definition of insanity?

      Given the current state of chaos, planning expert Dr Shane Geha said overseas migration is the thing that will save Sydney — not cripple it.

      “I understand there’s some strong rhetoric about cutting immigration and slowing population growth, but it’s just wrong,” Dr Geha said.

      “Our future depends on immigration. Strong population growth and significantly higher density living is the solution to our problems and any contrary suggestion is just nonsense.”

      • Crazy isnt it Gavin? Then uber moron Shannon Maloney recycled Dr Shanes quote from a few months ago for the story today. The story today mentioned the amount of people deserting Sydney. Then moron Maloney ends same story by quoting Dr Idiot saying the way to save Sydney is to have more migration, more people and more high density. Does anyone believe this crap?

  2. The Traveling Wilbur

    Happy-happy joy-joy.

    And Becker’s running the ship so double-plus good there. *waves happily at Chris*.

    GIF time, please?

  3. Nice goings on in the Bloomberg Australian Government Bond index today…….they swapped out the indicative bonds for the 5 year and 15 year tenors….fair enough since the calendar turned over.

    https://www.bloomberg.com/markets/rates-bonds/government-bonds/australia

    Then someone has sweetened the pot by putting through outlier trades in GSBG25 and GSBK35 to take any question of inversion out of the equation……I would love to know if both trades were by the one outfit.

    https://www.asx.com.au/asx/markets/interestRateSecurityPrices.do?type=GOVERNMENT_BOND

    All the rest of the trades today kept on the same theme as before……..I hope this wasn’t in concert with Bloomberg