Overseas Trading: Shanghai Composite Rallies on Hopes for Fund-Money Flood

The Shanghai Composite surged, as reports indicate a huge amount of sideline cash could reenter Chinese stock markets

Aug 7, 2015 at 8:52 AM
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Stocks in Asia closed mostly higher on Friday, with traders anticipating sidelined money to re-enter the Chinese market. Specifically, roughly 300 China funds controlling more than 1 trillion yuan could flow back into the market, according to Reuters, which cited China-based Shanghai Security News. The Shanghai Composite eventually closed 2.3% higher, lifting Hong Kong's Hang Seng 0.7% as well. Amid the most recent earnings wave, and the Bank of Japan's decision to keep its current stimulus plan in place, Japan's Nikkei edged out a 0.3% lead. South Korea's Kospi, though, eased 0.2%.

As investors keep a cautious eye on the U.S. nonfarm payrolls report, stocks in Europe are moving lower. Worse-than-expected industrial production data from Germany is also weighing on markets. At last glance, Germany's DAX and France's CAC 40 had each given back 0.4%, while London's FTSE 100 sat right at breakeven. 


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