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Asian Markets Sink Amid Risk Aversion; China Rises

AsianMarkets 011615 21Sep15

The major Asian markets fell across the board on Monday, weighed down by global and growth concerns and the negative lead from Wall Street last Friday. Risk aversion was the theme, as equities in the region were sold off. The Chinese market bucked the downtrend with a strong rally to the upside and the Japanese market remains closed for public holidays till Wednesday.

U.S. stocks meandered to an uneventful close in the week ended September 18th, as the rally that preceded the Fed's decision to defer interest rate hike petered out following the FOMC announcement and growth fears returned.

Meanwhile, crude oil has started the week on a positive note with the October futures, which expires today, advancing moderately. However, the rest of the commodities are seeing subdued trading. The currency market is also muted.

Australia's All Ordinaries opened lower and fell sharply in early trading before moving sideways for the rest of the session. The index ended down 97.90 points or 1.88 percent at 5,096. The market witnessed broad based weakness, with consumer discretionary, energy, financial and material stocks coming under notable selling pressure.

In corporate news, Sembsita Pacific said French utility Suez Environment agreed to buy 40 percent of stake it doesn't own in the former from Sembcorp. for A$485 million.

Hong Kong's Hang Seng Index also languished below the unchanged line throughout the session before closing 163.90 points or 0.75 percent at 21,757.

Meanwhile, China's Shanghai Composite added 58.62 points or 1.89 percent before ending at 3,157.

On the economic front, the Chinese Beige Book published by CBB International showed that the service sector in China firmed up in the third quarter. The survey also showed that manufacturing is no longer the bellwether of the economy and that capital expenditure strengthened in the third quarter.

The focus now shifts to the mid-week, when factory activity data for China and the eurozone will be released. Although economists do not expect factory activity in China to grow, further deterioration from depressed levels may aggravate concerns and in turn fan the global growth worries.

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