China downturn drags down stocks
MANILA, Philippines - Share prices tumbled for two straight days, pushing the index below the 7,000 mark following new signs of a slowdown in China’s economy, analysts said.
They said low inflation figures from China, volatility in other major emerging markets dampened investor sentiment.
China’s inflation eased in September, stoking expectations that Beijing would have more leeway for interest rate cuts or other stimulus to prop up slowing economic growth.
The broader Philippine Stock Exchange index (PSEi) plunged by another 88.67 points, or 1.26 percent, to settle at 6,924.77, while the broader All Shares declined by 40.54 or 1.006 points.
Value turnover reached P5.209 billion. Decliners edged out advancers, 112 to 64 while 46 stocks were left unchanged.
Meanwhile, Asian stock markets extended losses yesterday as investors digested weak Chinese trade and low inflation. Japan’s Nikkei 225 for instance, slid two percent to 17,081.89 while South Korea’s Kospi dropped 0.5 percent to 2,009.37. Similarly, Hong Kong’s Hang Seng also declined 0.8 percent to 22,439.91. On the other hand, Shanghai Composite Index in mainland China was nearly flat, down 0.1 percent to 3,289.80.
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