Japan’s broad TOPIX index is lower this evening after the holiday weekend – following a six-day rise – led by Real Estate, Mining, and Banking sectors as traders suggest “the mood is to hold back ahead of the Fed meeting.” China’s dismal data and comments about no imminent rate cut have done nothing to tamp down enthusiasm for Shanghai Composite stocks as the Chinese government “unveiled guidelines to support the development of the stock market, pledging to make blue chips bigger and stronger and more actively traded,” though HKSE is delayed for now due to Typhoon warnings. MSCI Asia-Pac is down at the open for the 9th day in a row – the longest losing streak since 2002.
Japanese stocks lower led by Banks and Real Estate…
Chinese stocks delayed open but have screamed to 18-month highs after the unveiling of QE-lite… up 16.5% since QE-lite
and added this evening:
The Shanghai government unveiled guidelines to support the development of the stock market, pledging to make blue chips bigger and stronger and more active trading. The government said it will actively support the Shanghai-Hong Kong Stock Connect arrangement and improve the international influence of Shanghai’s capital markets. It also pledged to expand the size of foreign investment programs and and allow them invest more in financial futures products. (Shanghai Securities News)
So clearly – now they have lost housing as wealth creation policy mechanism, they are herding everyone into stocks… we are sure that will end well!
But oddly – Bloomberg’s China -US equity iundex (most traded Chinese firms in US) has plunged for longest streak since March (making room for Alibaba?)
And Asia-Pac stocks in general are down for the 9th day in a row…
The worst streak since 2002!
via Zero Hedge http://ift.tt/1tZ62hr Tyler Durden