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Shanghai shares end week almost 8% lower as markets recover | Shanghai shares end week almost 8% lower as markets recover |
(about 3 hours later) | |
Chinese shares ended the week almost 8% lower after volatile trading that started on Monday with shock losses and spread fear to global markets. | Chinese shares ended the week almost 8% lower after volatile trading that started on Monday with shock losses and spread fear to global markets. |
On Friday, the mainland's benchmark Shanghai Composite closed up 4.8% at 3,232 points. | On Friday, the mainland's benchmark Shanghai Composite closed up 4.8% at 3,232 points. |
China's second bourse, the Shenzhen Composite, closed up 5.4% to 1,846 points, but ended the week 9.4% lower. | China's second bourse, the Shenzhen Composite, closed up 5.4% to 1,846 points, but ended the week 9.4% lower. |
Other stock markets in Asia also continued their rebound, helped by a strong finish for US shares. | Other stock markets in Asia also continued their rebound, helped by a strong finish for US shares. |
Japan's benchmark Nikkei 225 closed up 3% at 19,136 points, but the Hang Seng index in Hong Kong reversed earlier gains to close down 1%. | Japan's benchmark Nikkei 225 closed up 3% at 19,136 points, but the Hang Seng index in Hong Kong reversed earlier gains to close down 1%. |
The Hang Seng ended the week 3.6% lower - its sixth consecutive weekly fall. | The Hang Seng ended the week 3.6% lower - its sixth consecutive weekly fall. |
Dominic Chan, analyst at GF Securities in Hong Kong, said: "Investor confidence remains shaky. Some took profit as they think the rally is not sustainable." | Dominic Chan, analyst at GF Securities in Hong Kong, said: "Investor confidence remains shaky. Some took profit as they think the rally is not sustainable." |
Angus Nicholson, an IG Markets analyst, said investors remained concerned about China and when the Federal Reserve will raise US interest rates. | Angus Nicholson, an IG Markets analyst, said investors remained concerned about China and when the Federal Reserve will raise US interest rates. |
European markets were mixed, with London's FTSE 100 almost unchanged in mid-afternoon trading. The Paris and Frankfurt markets were slightly lower, while the Dow Jones in the US opened down 0.5%. | |
Analysis: Andrew Walker, BBC World Service economics correspondent | Analysis: Andrew Walker, BBC World Service economics correspondent |
China's market has rebounded, so sighs of relief all round? | China's market has rebounded, so sighs of relief all round? |
Some argue, it is a typical August market flap, and calm was always going to return when the grown-ups are back from their holidays. Well, maybe. | Some argue, it is a typical August market flap, and calm was always going to return when the grown-ups are back from their holidays. Well, maybe. |
But this episode is a reminder of how important China is to the global economy and of the fact that it is slowing down. | But this episode is a reminder of how important China is to the global economy and of the fact that it is slowing down. |
The rest of us really do need China to achieve a smooth transition to a slower and more sustainable growth rate. | The rest of us really do need China to achieve a smooth transition to a slower and more sustainable growth rate. |
Two figures to underline the need for more moderate growth: the average over the last three decades was 10%, and investment has been more than 45% of national income, or GDP, every year since 2009. | Two figures to underline the need for more moderate growth: the average over the last three decades was 10%, and investment has been more than 45% of national income, or GDP, every year since 2009. |
Neither can last indefinitely. The hard bit is getting to a new path without tripping up on the way. | Neither can last indefinitely. The hard bit is getting to a new path without tripping up on the way. |
Read more from our experts: | Read more from our experts: |
Andrew Walker: China's slowdown and cheap oil | Andrew Walker: China's slowdown and cheap oil |
Carrie Gracie: China's deafening silence | Carrie Gracie: China's deafening silence |
Robert Peston: China's woes and a still flawed global economy | Robert Peston: China's woes and a still flawed global economy |
Duncan Weldon: What next for the global economy after China market woes? | Duncan Weldon: What next for the global economy after China market woes? |
Kamal Ahmed: India - we can take the economic lead as China stumbles | Kamal Ahmed: India - we can take the economic lead as China stumbles |
Japan inflation flatlines | Japan inflation flatlines |
The rise in Tokyo extended the previous day's recovery for Asia's largest stock market after its sharp losses earlier this week. | The rise in Tokyo extended the previous day's recovery for Asia's largest stock market after its sharp losses earlier this week. |
Investors were also digesting new data showing that Japanese inflation fell back to zero in July, raising speculation that the central bank would launch a fresh round of stimulus. | Investors were also digesting new data showing that Japanese inflation fell back to zero in July, raising speculation that the central bank would launch a fresh round of stimulus. |
In Sydney, the ASX 200 finished 0.6% higher at 5,263 points. | In Sydney, the ASX 200 finished 0.6% higher at 5,263 points. |
Marking the end of a week of corporate results, the supermarket Woolworths reported a 12.5% drop in full-year profit - its first fall in almost two decades. | Marking the end of a week of corporate results, the supermarket Woolworths reported a 12.5% drop in full-year profit - its first fall in almost two decades. |
However, Woolworths' shares closed 1.5% higher after the retailer announced a new chief executive in a bid to revive its fortunes. | However, Woolworths' shares closed 1.5% higher after the retailer announced a new chief executive in a bid to revive its fortunes. |
South Korea's Kospi index finished 1.6% higher at 1,937 points. | South Korea's Kospi index finished 1.6% higher at 1,937 points. |
The recovery across Asia took its cue partly from China's recovery, but also the strong sentiment from the US. | The recovery across Asia took its cue partly from China's recovery, but also the strong sentiment from the US. |
Shares on Wall Street rose overnight and oil prices jumped sharply after revised figures showed the US economy expanded far more than originally thought in the three months to June. | Shares on Wall Street rose overnight and oil prices jumped sharply after revised figures showed the US economy expanded far more than originally thought in the three months to June. |