Chinese stocks dip after a week off
On Monday, Chinese shares dropped, catching up with evident losses in global markets, as mainland markets opened once again to follow the Lunar New Year holiday.
The Shanghai Composite Index dipped 0.6% to 2,746.20. Stocks in the Shenzhen market grew 0.1%.
Last week both markets were closed, when concerns regarding global growth as well as the health of banking sector provoked selling around the world, thus sending the Nikkei Stock Average into an 11% dive. It has probably been the worst trading week for Japan’s benchmark since October 2008.
By the way, the losses in China appeared to be contained, as stocks elsewhere. For instance, in Japan, Hong Kong and Australia they grew from multiple lows.
Apart from that, investors were impressed by Chinese economic data, issued in the morning, and it deepened gloomy perceptions of a slowing national economy. The Chinese authorities reported that the country’s exports dipped 6.6% in Yuan terms in January, compared to December’s 2.3% surge. Additionally, Chinese imports decreased 14.4% on-year in January.
Meanwhile, Japan’s Nikkei Stock Average ended up with 7.2%, thus neutralizing its Friday’s loss and that sent this index to its lowest value since October 2014. Moreover, its losses came even after China announced a contraction in GDP in the fourth quarter.