Mainland stocks unaffected by US-Iran tensions despite tumbling Asian markets

Source:Global Times Published: 2020/1/6 12:11:05

Investors at a stock exchange in Nanjing, capital of East China’s Jiangsu Province. Photo: VCG

Worries over US-Iran tensions have negatively impacted Asian markets, but the resilient A-share stock market in China was unaffected on Monday. 

The benchmark Shanghai Composite Index inched into the red at Monday's open but soon rebounded. By 11:30 am, the index had edged up by 0.59 percent to 3,101.98 points. 

The Shenzhen Component Index edged up by 1.24 percent to 10,788.72 points, while the ChiNext board was up by 1.97 percent. 

On Monday morning, shares of Tesla-related companies surged as the US electric carmaker is poised to deliver the first batch of its made-in-China Model 3 to mainland customers.

Safe-haven oil and gas shares also surged. Zhongman Petroleum and Natural Gas Group Corp saw its shares touch the trading ceiling on Monday morning. 

The mainland markets were upbeat following recent encouraging news including the amendment of China's securities law and the central bank's capital injection into financial institutions via a reserve requirement ratio cut. 

Most Asia Pacific markets fell on Monday following heightened geopolitical tensions in the Middle East, though the A-share market was unaffected. The KOSPI Index in South Korea fell by 0.94 percent while Japan's benchmark Nikkei sank 2.13 percent. 

Hong Kong's Hang Seng Index edged down by 0.73 percent to 28,242.11 points. 

The Asian markets tumbled after an Iranian military commander was killed in a US airstrike that raised concerns of retaliation from Iranian forces. 

The US-Iran tensions also sent oil prices flying worldwide. By 10:36 am on Monday, the main contract of China's crude oil futures settled at 517.4 yuan ($74.2) per barrel, up 5.96 percent, its highest price since May 2019. 

Global Times

Posted in: MARKETS

blog comments powered by Disqus