Published: Sun, February 11, 2018

Markets Right Now: Dow down 800 as stocks sink steadily

Markets Right Now: Dow down 800 as stocks sink steadily

Japan's Nikkei index is back on track to close more than 3% lower after a brief rally.

In Hong Kong, the benchmark Hang Seng Index was down more than 3 per cent by midday, with the sub-index tracking mainland Chinese companies was off around 4 per cent.

Markets followed US stocks lower after the Dow, coming off a record high, entered a "correction" - that is, a 10 percent decline from its latest peak - for the first time in two years.

The trouble in Asian markets followed more grim news from Wall Street. Germany's DAX lost 2.6 percent while France's CAC 40 ended down 2 percent. Hong Kong's Hang Seng index was the worst hit among major Asian bourses.

While the more than 1,000 point tumble in the Dow Jones industrial average led the market lower, the USA dollar's weakening against the Japanese yen also hurt export manufacturers' shares.

Both the Dow and S&P 500 lost more than five per cent for the week, as the Dow recorded 1,000-point drops on Monday and Thursday.

After hitting a high two weeks ago, USA stocks started to tumble last week after the Labor Department said workers' wages grew at a fast rate in January.

Stocks struggled to stabilize much of the day as investors sent prices climbing, then slumping in unsteady trading a day after the market entered its first correction in two years. Many market watchers have predicted a pullback for some time, saying stock prices have become too expensive relative to company earnings.

Things were a lot uglier in Asia, where stocks dropped roughly 2% in Tokyo, 3% in Hong Kong and 4% in Shanghai. The Nasdaq composite added 97.33 points, or 1.4 percent, to 6,874.49.

The Dow Jones industrials are down 800 points, extending the market's losses.

Analysts and market participants attributed the swoon to a cocktail of factors, including increasing margin calls, rising valuations, the government's growing deleveraging programme and jittery investors cashing out ahead of the long Lunar New Year holiday, which starts next week.

The Standard & Poor's 500 index gave up 77 points, or 2.9 percent, to 2,603.

Data showing surging USA production has sent crude spiralling downward, with both main contracts about 10 percent off their January highs, and offsetting a cap deal between OPEC and Russian Federation. Zhongsheng Group Holdings Limited now has a total float of 2.27 billion shares and on average sees 3.65M shares exchange hands each day. The stock recovered 15.34% since its low point and has performed 1.7% year-to-date. The dollar fell to as low as 108.50 yen from nearly 110 yen the day before, hit by a weak sale of U.S. bonds, which jacked their yield back close to four-year highs. CK Asset lost 2.37 per cent to HK$66.95.

More notable recent China Mining Resources Group Limited (HKG:0340) news were published by: which released: "Australia's AWE serves Mineral Resources notice to match Mitsui offer" on January 31, 2018, also with their article: "China Wealth Fund Joins Fray for $2 Billion Rio Portfolio" published on February 08, 2018, published: "Australia's Mineral Resources to buy AWE Ltd for $403 million" on December 20, 2017.

The market got off to a mixed start on Thursday but has fallen steadily as the morning wore on.

Sydney fell 0.9 percent, Singapore shed 1.7 percent and Seoul was 1.8 percent off. Wellington, Manila and Taipei were also hammered. The blue chip average suffered its second 1,000-point drop in a week on Thursday.

Traders digested mixed remarks from Federal Reserve officials on a day bereft of economic news.

Hanesbrands sank 8.8 percent after its results came up short of analysts' foreacasts.

A company must also belong to the top 90% of the total market capitalization on the SEHK; and to the top 90% total turnover on the SEHK.

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