Asian Insights and Developments
Posted by Larry Doyle on June 29, 2010 10:47 AM |
As markets are breaking down in America this morning, the waves of selling actually emanated in Asia. To that end, how do we get an unfiltered and unbiased perspective on economic and market related developments from that part of the world? Welcome to Sense on Cents.
A close personal relationship of mine works for Credit Suisse in China and provides the following commentary:
“An absolutely horrid day. Volume picked up as Shanghai broke the key 2,500 support level. Volume picked up in the afternoon after we broke 2,500 as panic selling entered the market. About 120 stocks finished limit down on the day, with many others moving more than 10% intra-day from day highs. If there is anything positive worth pointing out, it is that the cross-Straits trade agreement was signed, increasing cooperation in SE Asia, clearing one of the largest hurdles for regional economic development.
A number of stories were swirling in the market, but they are largely anecdotal, so I’ll leave them alone. I’ll say this,
investors continue to be concerned about the lack of liquidity (sighted both in local press as well as talked about by a
number of locals in recent days) as well as overhangs on the property sector, basic materials sector (gold fell hard
overnight), and the new corruption scandal developing in the airline industry.”
Wow. Nothing like a lack of liquidity, excess supply, and scandal to rock the global marketplace. If I did not know the calendar read 2010, I might think we were back in 2008 again. Thanks again to our ‘man on the ground’ in Asia for providing this wealth of sense on cents.