China shares tumble, with Shanghai off 4.1% – CNBC

8 months ago Comments Off on China shares tumble, with Shanghai off 4.1% – CNBC

Chinese markets tumbled at the open Monday, but other markets in Asia were mixed by mid-morning, with Japan extending its gains from the previous week. Analysts expect some rocky trading this week amid a deluge of economic data in the region.

Chinese markets opened in negative territory, with the main Shanghai composite down 4.07 percent while the Shenzhen composite slipped 5.7 percent.

“Markets look set for a volatile week as a raft of data releases globally set markets up for a dramatic reweighting of growth expectations,” wrote Angus Nicholson, a market analyst at IG, in his morning note.

The Japanese benchmark index, Nikkei 225, was up 0.4 percent, after earlier trading up as much as 1.5 percent. Last week, the index added about 1.39 percent. Early movers on the index included Sharp.

Shares of the troubled Japanese electronics maker were down as much as 4.55 percent in early trade before retracing some of the losses to trade down 3.79 percent. Its shares have fallen 26 percent between Feb. 23 and Feb. 26. Sharp shares fell after its takeover deal from Taiwan’s Foxconn, which was announced last Thursday, was put on a hold. The latter said it would not sign the deal until Sharp clarified previously undisclosed contingent liabilities, reported Reuters.

On Monday, Sharp said there was no deadline for finalizing a deal, following a report over the weekend from the Nikkei setting March 7 as the timeline for an agreement.

Across the Korean Strait, the Kospi was up 0.25 percent. Hong Kong’s Hang Seng index fell 0.59 percent.

Australian’s S&P/ASX 200‘s was up 0.72 percent in afternoon trade, with most sectors gaining. The heavily-weighted financials sector was up 0.72 percent, while the gold sector fell 2.10 percent.

Despite expected gains in shares Monday, analysts also believe risk appetite remain “exceptionally weak” as more investors have turned to safe-haven assets in recent weeks. Vishnu Varathan from Mizuho Bank wrote in a morning note, “U.S. 10-year bond yields dropping below 1.8 percent and sharp gains in safe-haven Japanese yen and gold prove this point.”

China shares tumble, with Shanghai off 4.1% – CNBC}