China’s state funds reportedly selling stocks, Shanghai Composite down over 1%

Dhwani Mehta FXStreet

As risk-aversion extends into Asia this Friday, the regional equities are in a sea of red, led by the sharp declines in the Chinese stocks.

According to some market rumor, China’s state pension funds are reportedly selling local stocks. The large-cap stocks on the indices are the hardest-hit.

The sentiment around the Asian stock markets remains undermined by the continued rise in the coronavirus cases in the US, as it affects the economic recovery expectations negatively.

Meanwhile, the World Health Organization’s (WHO) latest statement that the virus is air-borne also adds to the downbeat market mood.

Among the major indices, Japan’s benchmark index, the Nikkei 225, drops 0.40%, the ASX 200 index sheds 0.25%. South Korea’s KOSPI is down 0.76% while Hong Kong’s Hang Seng loses 1.15%. China’s benchmark, the Shanghai Composite index loses 1.20% to trade around 3,400 levels.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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