06/02/2024 – 6:26
By Sergio Caldas*
São Paulo, 02/06/2024 – Asian stock markets closed without a single direction this Tuesday, with the Chinese recovering vigorously after signs of official support and others falling in the wake of losses on Wall Street yesterday.
In mainland China, markets posted robust gains after falling for six straight sessions amid concerns about the health of the world's second-largest economy. The main Chinese stock index, the Shanghai Composite advanced 3.23% today, to 2,789.49 points, and the less comprehensive Shenzhen Composite jumped 5.14%, to 1,506.79 points, in its best day since February 2019.
In a statement, the Chinese market regulator encouraged companies to conduct share buybacks, declare dividends and take other initiatives to boost their value. Central Huijin Investment, a sovereign wealth fund that controls China's state banks and large companies, promised to expand its share purchases.
In addition, Chinese President Xi Jinping is expected to hold a meeting with officials to discuss the recent weakness in stock markets, according to anonymous sources interviewed by Bloomberg.
In Hong Long, the Hang Seng gained 4.04%, the biggest for a single day since July 2023, ending the session at 16,136.87 points.
Other Asian markets felt the bad mood of the New York stock exchanges, which fell across the board yesterday as the message was reinforced that the Federal Reserve (Fed, the US central bank) is not in a hurry to start reducing interest rates. The Japanese Nikkei index fell 0.53% in Tokyo, to 36,160.66 points, and the South Korean Kospi fell 0.58% in Seoul, to 2,576.20 points. In Taiwan, there was no business today due to a public holiday.
In Oceania, the Australian market was in the red for the second consecutive session, also under the weight of Wall Street and after the RBA – as the country's Central Bank is known – maintained its basic interest rate at the current level of 4.35%. The S&P/ASX 200 fell 0.58% in Sydney, to 7,581.60 points.
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*With information from Dow Jones Newswires and the Associated Press
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