Drop in Oil, Shanghai Surges 3.6

Market Update Analysis:

Drop in Oil, Shanghai Surges 3.6%

Author: 123jump.com Staff
123jump.com
Last Update: 6:40 PM ET July 18 2008

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A drop in oil prices lifted stocks in Shanghai and in Hong Kong. Airlines and realty stocks closed higher. Yuan continue to surge and for the week gained 0.25% to 6.82 to a dollar. For the year yuan has gained 7% and likely to gain at least 1% more in the rest of the year. China yesterday reported gross domestic product surged 10.1% in the second quarter ending in June.

China Resources Enterprises fell 3.2% after Credit Suisse downgraded the stock to “neutral” from “outperform.”

Commodity stocks also fell on bearish expectations on some of the company’s earnings. China Shenhua Energy shed 1% and Yanzhou Coal plummeted 6%.

Sinopec Corp edged up 0.1% as oil prices retreated.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 84.25 or 0.65% to 12,803.70, Hang Seng index in Hong Kong increased 139.47 or 0.64% closed to 21,874.19. ASX 200 index in Australia decreased 60.60 or 1.24% to close 4,840.40. The KL Composite index in Malaysia decreased 16.13 or 1.44% closed to 1,105.04.

The Kospi Index in South Korea decreased 15.57 or 1.02% to close at 1,509.99, SET index in Thailand closed lower 5.45 or 0.81% to 664.52 and JSE Index in Indonesia decreased 26.58 or 1.23% to 2,141.14. The Sensex index in India increased 523.55 or 3.99% to 13,635.40.

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