Shanghai Composite, the main index of the Shanghai Stock Exchange, lost 3.5 percent in Monday’s trading, following that decline on Tuesday. At the beginning of Tuesday’s session, the Shanghai Stock Exchange erased some of the previous day’s losses, but in the end it closed with a slight minus.
China’s re-election has had a negative impact
Markets have reacted to the re-election of Chinese President Xi Jinping as General Secretary of the Communist Party, even though this is his third term. The poor news is also the worsened outlook for the Chinese economy. Although it grew above expectations in the third quarter, estimates for the next period are rather negative.
Tokyo and Singapore Stock Exchanges Rise
The bad mood also spilled over into Hong Kong. The country’s Hang Seng index lost more than six percent on Monday, while Tuesday’s trading ended in the green despite an initial continued decline. Of Asia’s major stock exchanges, Tokyo’s rose, the Nikkei index firmed by more than a percent, Singapore gained around 0.3 percent.