China markets recover following early falls, led by steel stocks
Chinese markets ended higher, despite early falls, with steel companies rising in the morning session on news of Fortescue's deal to sell iron ore to Chinese steel mills at a 35 percent discount. Markets also took a boost after the People's Daily newspaper said China will stick to "moderately loose" fiscal policies.
The Shanghai Composite Index closed 1.4 percent up. Turnover for Shanghai A shares dropped to 117.4 billion yuan ($17.2 billion) from Monday's 136.9 billion yuan while gaining Shanghai A shares outnumbered losers by 709 to 223.
Hong Kong's benchmark Hang Seng Index nudged up 0.84 percent. The China Enterprises Index, which represents top Hong Kong-listed mainland stocks, was up 0.47 percent.
Taiwan's Taiex index slumped 2.1 percent as the island reels from the aftermath of Typhoon Morakot.
Mainland listed steel shares gained 3.68 percent on average after Fortescue agreed to provide Chinese steel mills with iron ore at a 35 percent discount until the end of the year. Chongqing Iron and Steel (SH:601005; HK:1053) rose 10 percent in Shanghai and 5.7 percent in Hong Kong. Maanshan Iron and Steel (SH:600808; HK:0323) rose 3 percent in Shanghai and 6.1 percent in Hong Kong. Anyang Iron and Steel (SH:600569) rose to the 10 percent trading cap. Fushuan Special Steel (SH:600399) rose 9.2 percent.
Everbright Securities (SH:601788) only rose by 30 percent in what was a muted first day of trading. Related shares sank. The brokerage's parent China Everbright Limited (HK:0165) dropped 6.19 percent. Dazhong Transportation (SH:600611) which has a large stake in the broker, lost 9.23 percent.
Competitor brokerage shares also fell, including Southwest Securities (SH:600369), which fell by the 10 percent trading after announcing its own placement plan.
Ship builders surged after the China International Ship Industry Association revealed that Chinese shipbuilders received more than 4.1 million dead weight tons (DWT) orders in July, accounting for nearly 70 percent of the global market share. Guangzhou Shipyard International (SH:600685, HK:0317) rose to the 10 percent cap in Shanghai and 6.4 percent in Hong Kong; China CSSC Holdings Limited (SH:600150) rose 6.8 percent. CSSC Jiangnan Heavy Industry Co (SH:600072) rose 6.7 percent.
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