Asia: Chinese stocks tumble despite housing figures

Chinese stocks defied an encouraging US rally and solid housing market figures to fall on Tuesday.

The Shanghai Composite closed lower by 6.15% at the close, its biggest loss since the 8.5% plunge on July 27. For each stock that rose, about 35 fell, and more than 600 companies plunged by the daily 10% limit.

The smaller Shenzhen Composite Index was down 6.58%, while the ChiNext Index was down by 6.08%.

Accendo Markets said a lack of trust in Chinese macro data has compounded both Chinese and global growth concerns.

The indices fell primarily in the mainland with Singapore’s index down a touch by 0.27% and Hong Kong’s Hang Seng index down 1.43%.

Meanwhile Japan’s Nikkei 225 was down 0.32% after growth concerns re-emerged yesterday as Shinzo Abe’s government was seen to require a bigger quiver to house a few extra ‘arrows’ to augment his 'three arrow' policy of defeating deflation with a blend of fiscal stimulus, monetary easing and structural reforms. The yen was at ¥ 124.26 to the dollar.

Down under, the S&P ASX 200 was down by 1.2%, led lower by retailer Dick Smith which plunged despite narrowing missing forecasts. The tech store’s share price was down 16.5% to the lowest point since it floated in 2013.

New Zealand shares fell as the country’s gloomier economic outlook hangs over earnings season. The S&P/ NZX 50 Index slipped by 0.3% to 5710.76 as broadcaster Sky Network Television, telco Spark New Zealand and Fletcher Building declined.