Chinese Stocks Slump After Data as Yuan Heads for Four-Year Low

Chinese stocks fell the most in a week after trade data signaled a deepening slowdown in the nation’s economy and sinking crude prices dragged on oil companies. The yuan headed for its lowest close in four years.

The Shanghai Composite Index dropped 1.9 percent to 3,470.07 at the close. Energy and material producers were the worst-performing industry groups after oil plunged to the lowest level in more than six years. PICC Property & Casualty Co. tumbled the most since July in Hong Kong after American International Group Inc. sold a stake in the insurer. The Hang Seng China Enterprises Index slid for a fourth day, while the yuan dropped after the central bank cut its reference rate to the lowest since Aug. 27.

China’s exports fell for a fifth month and a slump in imports extended to a record 13 months, suggesting six interest-rate cuts and expedited fiscal spending are failing to boost growth. Inflation data on Wednesday is forecast to show producer price deflation deepened in November. The yuan weakened even after figures Monday showed the nation’s foreign-currency stockpile shrank to $ 3.44 trillion as the central bank sold dollars to prop up the currency.

The CSI 300 Index retreated 1.8 percent. The Hang Seng China index fell 1.9 percent at 3:06 p.m., dragged down by insurers, while the Hang Seng Index slipped 1.8 percent.

Source: Bloomberg


Japanese Stocks Swing as Volatility Surges to Four-Year High

Japanese stocks seesawed between gains and losses, sending a measure of short-term volatility to a four-year high.

The Topix climbed 0.2 percent to 1,481.24 at the trading break in Tokyo, after falling as much as 2.1 percent. Ten-day historical volatility on the gauge surged to 53, its highest level since March 2011, while volume on the measure was 20 percent above its 30-day intraday average. The Nikkei 225 Stock Average added 0.8 percent to 18,309.43.

Source : Bloomberg