July 05, 2015

“If the Chinese government has the will, it certainly has the ability to stop the slide in the Chinese stock market...”

NY Times Asian stock markets dropped on Monday morning in early trading but did not plunge, as investors reacted with muted dismay to the results of the Greek referendum and showed nervousness about steep declines in China’s stock market over the past three weeks. by Keith Bradsher

'But the Shanghai market jumped sharply in early trading as the government poured money into brokerage firms to help them and their customers buy shares. The market leapt 7.8 percent at the start, but surrendered half those gains in the first 10 minutes of trading and was up 3 percent by late morning. The smaller Shenzhen stock market also started very strong but was flat in late morning.

'Oil prices fell 3.4 percent, as traders placed bets that recent events could lead to slower global economic activity and weaker demand. Bond prices rallied in Australia, and gold and silver prices climbed, as investors sought safety in response to uncertainty about whether Greece would stop using the euro and about whether mainland China’s economy would slow after investors there lost $2.7 trillion in the stock market over the past three weeks.

'The Nikkei 225-share index in Japan fell 1.6 percent, and the Kospi index in South Korea dropped 1.7 percent in early trading. The stock market in Australia, where mining companies are heavily dependent on Chinese demand, was down 1.3 percent.

'Some of the sharpest moves involved currencies. The euro fell 0.6 percent against the dollar, to $1.1042, while the Australian and New Zealand dollars dipped slightly. Kymberly Martin, a currency strategist at the Bank of New Zealand, said that the Greek vote and China’s market decline both tended to have similar effects on currencies and stock markets.'

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