HONG KONG (AP) — Asian stocks were mostly lower on Monday, with Chinese shares again leading the declines even after the market regulator in Beijing pledged to crack down on abuses and protect small investors.
The main index in the smaller market in Shenzhen sank 5.4% but then rapidly recovered to trade 1.7% lower. The Shanghai Composite index slipped more than 2% before recovering some lost ground.
U.S. futures declined and oil prices were higher.
On Sunday, the China Securities Regulatory Commission said it would redouble enforcement of measures against crimes such as market manipulation and malicious short selling, while guiding more medium and long-term funds into the market.
The move followed others in recent days that appear to have done little to reassure investors who have been pulling money out of the markets for months. Last week, Chinese stocks capped their worst week in five years.
Comments by former President Donald Trump said he might impose a tariff of more than 60% on imports of Chinese goods if he is re-elected also hurt market sentiment. In another blow, a report said China’s services sector grew at a slightly slower rate in January, with the purchasing managers’ index falling to 52.7 from 52.9 in December, according to a private-sector survey Monday. A PMI above 50 indicates expansion when compared to the previous month.
By mid-afternoon Monday, the Shanghai Composite index
CN:SHCOMP
was down 1% at 2,702.19. Hong Kong’s Hang Seng
HK:HSI
was flat at 15,523.59.
Elsewhere in Asia, Tokyo’s Nikkei 225 index
JP:NIK
climbed 0.5% to 36,354.16. Australia’s S&P/ASX 200
AU:XJO
sank 0.9% to 7,625.90. South Korea’s Kospi
KR:180721
shed 0.9% to 2,591.31.
In other trading, U.S. stock futures
ES00,
NQ00,
were modestly lower, while benchmark U.S. crude
CL.1,
rose 5 cents to $72.32 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude
BRN00,
the international standard, rose 14 cents to $77.47 a barrel.
The U.S. dollar
DXY
fell to 148.39 Japanese yen from 148.43 yen. The euro
EURUSD,
cost $1.0782, down from $1.0784.
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