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 China disappointed stock investors
2012-11-15 14:42



Shares in Shanghai cheaper, because the Chinese industry is shrinking the eighth month in a row.
The MSCI index for Asia-Pacific region fell from its highest level since the month by 0.4 percent, stock market indices lose in most Asian markets except Japan. Excluding Japan shares the loss on MSCI was 1.1 percent.
Investors biased against preliminary results of a survey showing that the Chinese industry is shrinking the eighth consecutive month as well as worse prognosis of the American central bank (Fed) on the rate of development of the world's largest economy, the United States.


 

 
Andrew Pease, main investment strategist Australian company Russell Investment Group, says that the increase operations Twist by the Fed which consists in swap short-term bonds in the portfolio of the U.S. central bank for longer proves that the Federal Reserve is concerned about the condition of the economy. - Although the market is cheap, our approach to risk has not changed - Pease reveals. He pointed at such dangers as the situation in the euro area and increasing the profitability of Spanish and Italian papers, which is a great challenge for the government.
The main index in Shanghai stock market fell by 1.6 percent., the most of the key indexes in the region. The main reason are the preliminary results of a survey conducted by HSBC Holdings and Markit Economics which show that in June a series of the decline of Chinese industry activity has increased to eight months. Similarly it was so bad during the last financial crisis
The Tokyo Nikkei 225 jumped to 1.1 percent. Investors rely on that the Fed's decision on Wednesday will slow the rise of the yen, which may buoy up the condition of Japanese exporters.


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