5 Jun 2015
Shanghai composite hits 7-year high, trades above 5000
FXStreet (Mumbai) - China’s Shanghai Composite index advanced on Friday to hit a new seven-year high on the back of increased expectations of fresh monetary stimulus.
The Shanghai Composite climbed 2% to trade above the 5,000-mark for the first time since early 2008. The tech-heavy index was up 2% for a year-to-date gain of 118%. Meanwhile, the MSCI Asia Pacific Index declined for the past four sessions and fell again on Friday after Greece decided to delay its EUR 300 million loan repayment to the IMF.
Fears of the speculative bubble in the Chinese markets are on the rise. Leading analysts say margin lending is now approaching 3.5% of GDP, a level exceeding the US. Fears of curb to margin lending were behind the 5% intraday fall on Thursday.
Investors now await the US Non-farm payrolls report due later today, which could have broad implications on the timing of interest rate hike in the US.
The Shanghai Composite climbed 2% to trade above the 5,000-mark for the first time since early 2008. The tech-heavy index was up 2% for a year-to-date gain of 118%. Meanwhile, the MSCI Asia Pacific Index declined for the past four sessions and fell again on Friday after Greece decided to delay its EUR 300 million loan repayment to the IMF.
Fears of the speculative bubble in the Chinese markets are on the rise. Leading analysts say margin lending is now approaching 3.5% of GDP, a level exceeding the US. Fears of curb to margin lending were behind the 5% intraday fall on Thursday.
Investors now await the US Non-farm payrolls report due later today, which could have broad implications on the timing of interest rate hike in the US.