AFP, Hong Kong :
Shanghai stocks rallied Friday, ending a tumultuous month in the same fashion as they started, while other Asian markets also saw characteristic volatility as oil prices extended a recent rally.
Mainland Chinese investors have wiped about a quarter of the value off Shanghai shares in January, the worst month for the index in more than 20 years, as they fret over the state of the economy and authorities’ ability to handle the crisis.
Fears about the problems in China — the world’s number two economy and a key driver of global growth — has sent tremors across trading floors from Asia to the Americas, hammering stock prices and assets considered higher risk, such as emerging market currencies.
And, despite speculation central banks in Japan and Europe could again step in to provide support, analysts warned of further problems ahead as oil prices remain stuck near 12-year lows and confidence remains at a premium.
“After the big selldown we’ve seen in the early part of January, we’re seeing a bit of stabilisation,” Matthew Sherwood, head of investment strategy at Perpetual Ltd in Sydney, told Bloomberg News.
Shanghai stocks rallied Friday, ending a tumultuous month in the same fashion as they started, while other Asian markets also saw characteristic volatility as oil prices extended a recent rally.
Mainland Chinese investors have wiped about a quarter of the value off Shanghai shares in January, the worst month for the index in more than 20 years, as they fret over the state of the economy and authorities’ ability to handle the crisis.
Fears about the problems in China — the world’s number two economy and a key driver of global growth — has sent tremors across trading floors from Asia to the Americas, hammering stock prices and assets considered higher risk, such as emerging market currencies.
And, despite speculation central banks in Japan and Europe could again step in to provide support, analysts warned of further problems ahead as oil prices remain stuck near 12-year lows and confidence remains at a premium.
“After the big selldown we’ve seen in the early part of January, we’re seeing a bit of stabilisation,” Matthew Sherwood, head of investment strategy at Perpetual Ltd in Sydney, told Bloomberg News.
