Most markets across world retreat, China stocks rally
Bourses in Europe and US were trading in red, while Asian shares were mixed with most of them falling
image for illustrative purpose
Beijing: World shares were mostly lower on Friday, though Chinese stocks reversed earlier losses following the announcement of fresh measures to revive the ailing property market. US futures were little changed, with the contract for the Dow Jones Industrial Average near 40,000 after it topped that level for the first time on Thursday. In early European trading, Germany’s DAX lost 0.5 per cent to 18,648.35 and the CAC 40 in Paris shed 0.5 per cent to 8,147.13. Britain’s FTSE 100 declined 0.3 per cent to 8,413.99.
China’s central bank said Friday that it was reducing required down payments for housing loans and cutting interest rates for first and second home purchases, among other moves. The announcements came after officials in Beijing reported persisting weakness in the economy, especially in the real estate industry. The government was due to hold a news conference on property policies later Friday.
Hong Kong’s Hang Seng jumped 1.1 per cent to 19,591.29 and the Shanghai Composite index surged 1 per cent to 3,154.03. Property developers were among the biggest winners. Shares in China Evergrande Group, the world’s most indebted developer with borrowings of more than $300 billion, jumped nearly 18 per cent, while China Vanke, another imperiled property conglomerate, jumped 19.6 per cent.
But while the renewed effort to get property sales back on track was welcomed in China, faster growth could slow efforts in other parts of the world to tame inflation if it adds to upward pressure on commodity prices, said Ipek Ozkardeskaya of Swissquote.
