Markets

Shares Hit a Low on Asia Stock Market As Shanghai Unveils Nasdaq-Style Tech Board

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On Monday, 21st July 2019, the stock on the Asian market slipped and made the news.

The STAR market began trading in the biggest city and the financial hub of China, Shanghai on Monday where the first batch of shares of 25 companies on the stock market rose ahead of a collective and enormous oversubscription far before their public appearance.

Stocks in the Asian market were low because of the introduction of novel shares on Nasdaq-style technology board on Shanghai Stock Exchange that hit the roof on being debuted.

The Shenzhen composite in China dropped by 1.785% while the Shanghai skidded 1.27%, closing at 1532.43 and 2886.97 on the stock exchange, respectively.

Whereas, the Hang Seng index in Hong Kong shed 1.2% as recorded in its final trading hour.

Likewise, the Japanese Nikkei 225 slipped 0.23% and closed at a value of 21416.79 along with the shares of Familymart, a convenience store, stooping 3.11%. Topix also ended its day at 1556.37 after dropping 0.49%.

Asahi Group Holdings announced an issuance of nearly 200 billion yen of shares to fund the planned purchase of the Australian operations of Aneheuser Busch Inbev, after which it leaped 8.87%.

The presiding alliance Shinzo Abe, the Japanese Prime Minister, was victorious by attracting a majority in the Parliament’s upper house in Sunday elections. This happened as a result of Japan’s continuous conflicts over trade with South Korea.

IMA’s managing director Richard Martin commented the following on Monday while talking to CNBC’s Squawk Box:

“I hope with the election out of the way, Abe feels the pressure is off him to take a hard line. There is scope to come back to the table and renegotiate. Without that election pressure on him, I hope he can do it.”

Kospi of South Korea closed at a drastically low value of 2093.34 because of the Hyundai Motor shares falling 1.12%. In Australia, S&P/ASX 200 closed at a value of 6691.20 after it declined 0.14%.

All in all, the MSCI Asia ex-Japan index shed 0.52%.

In the meantime, the situation remained tight in the Middle East. As per Iran, it detained an oil tanker with the British flag on the preceding Friday in the Strait of Hormuz. Iran claimed that the tanker was “violating international regulations.”

The senior foreign stock exchange strategist at the National Australia Bank, Rodrigo Catril, wrote:

“Tensions between Iran and the West continue to escalate with the tit for tat increasing in magnitude and thus increasing the risk of someone making an overstep leading to a military conflict, notwithstanding the fact that Iran, the US and its allies continue to say that they do not want a conflict.”

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