Asian stocks rise, led by China

<p>The Chinese government introduced short-selling measures to stabilise the market.</p>

Asian stocks rose today (August 4th) after China's regulators imposed limits on short selling equities in a bid to stabilise the market. They made the move after the release yesterday of weak manufacturing data, which drove shares down.

Investors who borrow shares must now wait one day to pay back loans, according to statements from the Shanghai and Shenzhen stock exchanges.

The new measures constitute the government's latest efforts to stabilise the market after Chinese stocks suffered three weeks of continued losses in June that wiped out £1.5 trillion.

"They’re basically saying they don’t want the market to sell off a lot more from here," Mohammed Apabhai, head of Asia trading strategy at Citigroup Inc. in Hong Kong, told Bloomberg TV. "This is yet another measure that they will use to defend the market and there’s probably more to come."

Japan's benchmark Nikkei 225 edged down 0.1 per cent to 20520.36, Australia's S&P/ASX 200 gained 0.3 per cent to 5697.90 and Hong Kong's Hang Seng remained flat at 24,407.33. The Shanghai Composite jumped 3.7 per cent to 3756.54 while South Korea's Kospi added one per cent to 2027.99.
.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.

For further details see our full non-independent research disclaimer and quarterly summary.