Asian shares were down today (June 26th), led by Chinese shares, with the Shanghai Composite Index tumbling 7.4 per cent to 4193.64 as a growing number of analysts warn that valuations have climbed too far.
The slide in Chinese shares is also blamed on fresh government moves to tighten rules for margin financing.
“The new risk in China is that excessive speculation in the stock market is creating a bubble that the authorities want to control,” Mark Matthews, managing director of Bank Julius Baer & Co. told Bloomberg. “The risk is that intervention in the market could cause it to go down.”
Meanwhile, investors also focused on Greece, which hasn't yet reached an agreement with European finance ministers. Talks are scheduled to resume on Saturday, ahead of an IMF debt-payment deadline for Greece expiring on Tuesday.
Japan's Nikkei ended the day 0.3 per cent lower to 20706.15, Hong Kong's Hang Seng Index dipped 1.78 per cent to finish at 26663.87 and Australia's ASX 200 fell 1.5 per cent to 5545.89. South Korea's Kospi Index edged up 0.2 per cent to 2090.26.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.