Thursday, March 10, 2016

China Shares Down Due to Weak Metals Prices, Steel Plant Concerns

trade, business, world business, finance

Shanghai Composite Index six-straight sessions of gains halted as China shares went down Wednesday amid concerns on metals prices and the consolidation of steel plants.

The Shanghai Composite Index loss about 1.4%, that ended their six-session winning streak, dragged by losses in basic materials and energy shares. The smaller Shenzhen Composite Index ended 2.1% down. Meanwhile, Hong Kong's Hang Seng was dragged to a 0.1% loss.   

South Korea’s Kospi rose 0.35%, and Australia’s S&P/ASX 200 gained 1%. In Japan, the Nikkei sold off for the second straight day, giving back 0.8% as a stronger yen weighed on major exporters again.

In China, shares of steel producers plunged after the official news agency Xinhua reported that the governor of Hebei, a northern province near Beijing, said the province aims to close 60% of its steel factories by 2020. That report sparked selling of steel-related stocks. Shanghai Hualian Mining was down 8.2%, and Shandong Jinling Mining lost 8%.

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