Australia shares on course for worst month since height of financial crisis
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Version 0 of 1. The Australian share market is on track for its worst monthly fall since the global financial crisis as concerns about China hit global markets. Related: Stock markets tumble as global growth fears intensify - live updates The benchmark ASX200 index fell 1.3% on Friday, following a 1.7% fall on Thursday, taking falls for August past 8%. If those falls are sustained next week, it will be the worst month for investors since October 2008. Fears about China’s slowing economy were stoked by Friday’s August manufacturing activity data, which hit a six-and-a-half-year low. Combined with a sharp fall on Wall Street overnight on Thursday, that sparked another selloff on Asian markets. The Hang Seng index in Hong Kong fell 1.5%, the sixth daily fall in a row, to close at its lowest level since May 2014. It has lost 20% since its peak in April putting it officially in bear market territory. In Japan, the Nikkei declined 2.9%, down 5.2% on the week. The Kospi index in Seoul fell 2%, not helped by official figures showing a plunge in exports from South Korea to China. In China, the Shanghai Composite experienced another torrid day and ended with the leading index down more than 4%. It has fallen 11.5% in the past week, its worst run since early July. The China securities regulatory commission made no mention of this week’s slump during its regularly scheduled press conference after market close on Friday, enforcing a feeling among investors that official commitment to pushing up the market has weakened. “It’s a very grim day after weaker data came out of China which put a finer point on the bigger picture question about China’s growth,” said CommSec market analyst Tom Piotrowski. “It seems like Chinese authorities are not having much success in stimulating their economy and the market is now sceptical that China’s devalued currency will have any impact in the next six months.” All sectors of the Australian market fell, with the exception of gold miners, and the precious commodity’s price rose. The Australian dollar also fell slightly to US73.02c, down from US73.13c on Thursday. The big four banks were among the worst performers, with Commonwealth Bank down 56 cents at $75.59, ANZ down 79 cents at $28.34, Westpac down 83 cents, at $31.37 and National Australia Bank 88 cents weaker at $31.16. |