Tokyo investors brace for China market reopening Monday

Investors in Japanese stocks will be bracing for the reopening of volatile Chinese share markets this week, after the benchmark Nikkei 225 index slumped to a 7-month low on Friday. Most markets in Asia reopen on Monday. Worries over China continue to weigh on global share markets as investors speculate on whether the volatility will push back the timing of the US Federal Reserve’s next rate hike. World indices have seen wild swings on growing fears about China's economy -- the world's second biggest and a key driver of global expansion -- as its leaders struggle to manage a slowdown in growth. Chinese bourses were closed on Thursday and Friday to mark the 70th anniversary of the end of World War II. The markets re-open tomorrow (Monday) after a four-day weekend and investors will be keeping a close eye on trading in mainland markets. On Friday, Tokyo shares dropped to their lowest since February, ahead of a key US jobs report that could determine the Fed's timetable for hiking rates. The Nikkei at the Tokyo Stock Exchange fell 2.15pc, or 390.23 points, to close at 17,792.16. It slumped 7.02pc over the week. The Topix index of all first section shares gave up 2.06pc, or 30.45 points, to finish at 1,444.53, marking a 6.79pc drop over the past five sessions.
Meanwhile, ailing China shares dragged Hong Kong (HK) stocks to their lowest close in two years. HK stocks fell for a third straight session on Friday as investors squared positions ahead of a key US monthly jobs report and while mainland markets remained closed.
The Hang Seng Index ended the day 0.5pc lower at 20,840.61, the lowest close since July 9, 2013. The blue chip index finished the week down 3.6pc, its 7th consecutive week of decline. The China Enterprises Index lost 1.4pc on the day to 9,169.59 points, also its lowest close since July 9, 2013. The index fell 6pc for the week, and has had four straight weekly drops. Among blue chips, PetroChina was the biggest loser in percentage terms, falling 3.7pc. It was followed by China Petroleum & Chemical Corp, which declined 3.4pc. Ping An Insurance was down 3.3pc. The Mainland (Chinese) markets have plunged 40pc since mid-June, report agencies.
- biplab