China markets end the week down as commodity prices drop
Chinese market fell today, led by non-ferrous metal shares, as commodity prices dropped on a strong dollar.
The Shanghai Comprehensive Index declined 0.52 percent to 2838.84, ending the week 4.18 percent down, the largest weekly loss in six weeks.
The Hang Seng Index slid 0.13 percent to 21024.40, ending the week with a loss of 2.77 percent. The Hang Seng Growth Enterprises Index gained 0.44 percent to 650.84. The Hang Seng China Enterprise Index advanced 0.08 percent to 12056.48.
Taiwan's TAIEX Index gained 0.29 percent to 7345.22.
Zijin Mining (SH:601899; HKG:2899), the country's largest gold producer, retreated 2.80 percent in Shanghai and 2.90 percent in Hong Kong. Zhongjin Gold (SH:600489), the second-largest, dropped 5.04 percent. Shanghai gold futures dropped 1.66 percent today.
Jiangxi Copper Co.(SH:600362;HKG:0358), China's biggest producer of the metal, fell 3.66 percent in Shanghai trading. Shanghai copper futures lost 1.52 percent today.
Aluminum Corp. of China (SH:601600; HKG:2600), the nation's biggest producer of the metal, declined 1.68 percent in Shanghai and 0.92 percent in Hong Kong. Shanghai Aluminum futures declined 0.64 percent.
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. (SH:600111) dropped 3.81 percent. The company denied media reports that it will start a join venture with China Investment Corp.
Paper shares dropped as three US paper manufacturors, New Page, Appleton Coated and Sappi, launched an application for anti-dumpling and anti-subsidy investigations on Chinese coated paper, the Oriental Morning Post reported today.
Shandong Chenming Paper (SH:000488; HK:1812) declined 1.98 percent in Shanghai trading and 1.87 percent in Hong Kong trading. Shandong Sun Industry Joint Stock Co.(SZ:002078) lost 1.49 percent. The United States Department of Commerce will decide whether the application meets legal requirements within 20 days.
US president Obama assured his Chinese counterpart Hu Jintao that the U.S. is committed to free trade when they meet privately Bloomberg reported yesterday.
Signs of a trade war between the two countries have been developing after the US imposed a 35 percent import tariff on Chinese tire imports and China retaliated by announcing an investigation into prices of U.S. poultry and car products.
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