10 Jul 2015
China stocks extends recovery - SSEC +6%, lead Asian indices higher
FXStreet (Mumbai) - Asian markets advanced on Friday, tracking positive lead from Wall Street overnight amid optimism about a deal between Greece and its creditors. While ongoing recovery in the Chinese stocks also boosted the sentiments.
Chinese equities rebounded for the second straight session with Shanghai Composite Index (SSEC) rallying nearly 6.50% and nears 4k barrier, marking the biggest back-to-back gain since 2008.
In a fresh move to stop the recent plunge, the official Securities Times reported on Friday that local securities regulators had ordered listed companies in their areas to submit plans to stabilize their stock prices, via measures such as purchases by major shareholders and company executives, share buybacks, and employee shareholding plans.
In the wealthy eastern province of Jiangsu, near Shanghai, regulators instructed all major shareholders who sold stock over the past six months to reverse course, adding that they should increase their holdings by at least 10% of the amount of the original reduction. Those whose share sales exceeded Rmb500m ($81m) were told to increase holdings by at least 20, FT reports.
Among Asian indices, Nikkei on Tokyo is now advancing 0.41%, Australia’s ASX trades +0.79%. While South Korea’s Kospi is marginally higher, up 0.27% so far.
SSEC Technical Levels
The index has an immediate resistance stands at 4000. Meanwhile, support is seen at 3795 levels and from here to 3585 levels.
Chinese equities rebounded for the second straight session with Shanghai Composite Index (SSEC) rallying nearly 6.50% and nears 4k barrier, marking the biggest back-to-back gain since 2008.
In a fresh move to stop the recent plunge, the official Securities Times reported on Friday that local securities regulators had ordered listed companies in their areas to submit plans to stabilize their stock prices, via measures such as purchases by major shareholders and company executives, share buybacks, and employee shareholding plans.
In the wealthy eastern province of Jiangsu, near Shanghai, regulators instructed all major shareholders who sold stock over the past six months to reverse course, adding that they should increase their holdings by at least 10% of the amount of the original reduction. Those whose share sales exceeded Rmb500m ($81m) were told to increase holdings by at least 20, FT reports.
Among Asian indices, Nikkei on Tokyo is now advancing 0.41%, Australia’s ASX trades +0.79%. While South Korea’s Kospi is marginally higher, up 0.27% so far.
SSEC Technical Levels
The index has an immediate resistance stands at 4000. Meanwhile, support is seen at 3795 levels and from here to 3585 levels.