Asian shares bounce off three-year lows while China's suffering goes on

[Viny]

Its good that Chinese economy is correcting itself, its good for global economy, these short term downfall are nothing to be worried about. As they say, you rise from ground only. So with everyfall there is bigger space to grow up again.

Indian will witness similar fall in short time, real estate market is over ballooned and crash inevitable it can be delayed but thats going to happen. Otherwise there would be long term currency crunch in market and growth will be hampered or would be too much dependent on FII and FDI's

 

[TaiShang]

Its good that Chinese economy is correcting itself, its good for global economy, these short term downfall are nothing to be worried about. As they say, you rise from ground only. So with everyfall there is bigger space to grow up again.

Indian will witness similar fall in short time, real estate market is over ballooned and crash inevitable it can be delayed but thats going to happen. Otherwise there would be long term currency crunch in market and growth will be hampered or would be too much dependent on FII and FDI's

Thank you for the cool-headed and realistic analysis.

Indeed, apart from the global weaknesses that impacts everybody, developed or developing, the entire China thing is the result of some corrections. If the correction hurts global economy, we are sorry for that, but, even that is for a long term greater good.

Some measures are systemic while some others are simply policy response to the ongoing global crisis that never ended since 2008.

The US manufacturing is declining.
Wages are stagnated.
Personal saving is in the red, that is huge personal debt.
Huge national debt that forced to government to close down for a while.
Unsustainable military industrial complex.
Interest rates near zero.
Excessive money printing.

Who in their right mind would think we were in good times? Now the hot money flying back to the US, anticipate hot-money economies to fall into debt and deeper crisis.

Export-dependent economies will also suffer because of declining global demand. So, look if your country has strong domestic production and consumption base.

Commodity (especially hydrocarbon) prices are falling, good for developed export economies of East Asia. Bad for dictatorships of the Gulf. Unfortunately, also bad for Russia but Russia has China as an able importer. Anticipate China to rely less on Saudi Arabia and more on gepolitical partners like Russia and Venezuela.

We will see harder days. If one's economy is not ready for that, sorry. That's historical dialectic.

 

[Pulsar]

Nobody cares about India hence they like to crowd here and reduce the quality. I wish both sides would stop visiting each others' section.

Huh? Nobody cares about India? It's only armchair nonentities like you and your ilk on PDF who don't. People who know their beans think differently than the self styled 'experts' like you who know squat about economics.

Read this...

"When you look outside India, for example, Brazil, Russia, China or Indonesia, all of a sudden, India looks like a million roses."

Taimur Baig, Deutsche Bank
23 Aug 2015

You guys are withering away. The sooner you get out of your world of delusions, the better.

 

[Economic superpower]

Thank you for the cool-headed and realistic analysis.

Indeed, apart from the global weaknesses that impacts everybody, developed or developing, the entire China thing is the result of some corrections. If the correction hurts global economy, we are sorry for that, but, even that is for a long term greater good.

Some measures are systemic while some others are simply policy response to the ongoing global crisis that never ended since 2008.

The US manufacturing is declining.
Wages are stagnated.
Personal saving is in the red, that is huge personal debt.
Huge national debt that forced to government to close down for a while.
Unsustainable military industrial complex.
Interest rates near zero.
Excessive money printing.

Who in their right mind would think we were in good times? Now the hot money flying back to the US, anticipate hot-money economies to fall into debt and deeper crisis.

Export-dependent economies will also suffer because of declining global demand. So, look if your country has strong domestic production and consumption base.

Commodity (especially hydrocarbon) prices are falling, good for developed export economies of East Asia. Bad for dictatorships of the Gulf. Unfortunately, also bad for Russia but Russia has China as an able importer. Anticipate China to rely less on Saudi Arabia and more on gepolitical partners like Russia and Venezuela.

We will see harder days. If one's economy is not ready for that, sorry. That's historical dialectic.

Excellent post.

The people that laugh at China's problems will get their moment considering the world economy is in trouble.

What goes around comes around.

Let the haters have their fun. Their time will come.

Huh? Nobody cares about India? It's only armchair nonentities like you and your ilk on PDF who don't. People who know their beans think differently than the self styled 'experts' like you who know squat about economics.

Read this...

"When you look outside India, for example, Brazil, Russia, China or Indonesia, all of a sudden, India looks like a million roses."

Taimur Baig, Deutsche Bank
23 Aug 2015

You guys are withering away. The sooner you get out of your world of delusions, the better.

The Indian currency has collapsed 10% in the past month or so. Million roses alright

Just wait for the moment the hot money starts to leave India, Rupee at 66 will look like the good old days. Cracks get covered up when hot money is flowing to the economy, the fun part will be when that same hot money flows out.

India is structurally the worst economy out of the BRICS due to its high dependence on imports for everything and need for hot money to finance its deficits. India runs a big current account deficit and budget deficit and it's through hot money inflows those deficits have been financed. Otherwise the Rupee will lose SIGNIFICANT value. A weaker Rupee will mean the cost of imports will rise big time and the economy gets smaller in dollar terms. India will have to use up its small forex reserves to prop up its currency or let the Rupee go into free fall.

India is a classic case of a structurally flawed economy being propped up by hot money inflows. Hot money can come in quick and solve the problems and can go out just as quick and cause disaster. No country is more dependent and vulnerable to hot money inflows than India.

 

[TaiShang]

Excellent post.

The people that laugh at China's problems will get their moment considering the world economy is in trouble.

What goes around comes around.

Let the haters have their fun. Their time will come.

Most of the haters are in much deeper trouble.

This is Dennis Etler's commented on the issue:

"Commentary: The media is awash in articles and comments about the contagion in global stock markets as one after another begins losing ground. Like bird flu the sickness appears to have started in China, but that is more apparent than real. What we are witnessing is the further development of the terminal crisis of capitalism. The economic collapse that begin in 2008 has not been alleviated. The recovery in the US has been anemic and Europe and Japan have been in the throes of an austerity and stagnation that has cut living standards and created massive social dislocations in countries most vulnerable to economic blackmail. Outright fascism and Nazism are on the rise and war fever has hit a feverish pitch in Europe and elsewhere.

To blame this all on China or Russia is absurd. Both these major players are reacting to the capitalist world in which they have been integrated. Neither can insulate themselves forever from the global crisis of capitalism. China in particular has to make some difficult choices. Further integrate itself into a global capitalist economy that is on the verge of collapse and emulate the neo-liberal economic policies that have brought it on, or reinvent its socialist economy and begin to move away from capitalist modes and relations of production which have served their purpose but are now becoming a detriment to further economic and social development. China is at a crossroads in this regard and as in 1949 and 1979 it has to once again reinvent itself."

 

[anon45]

more up to date:

Global stocks, dollar rebound but China smashed again
LONDON | BY MARC JONES

Volatile global markets got some respite from the latest blood-letting on Tuesday as bargain hunters nudged up Asian and European stocks, though China, at the center of the rout, was smashed again.

The dollar and oil prices saw their first rises in five days and some of the positions in safe-haven bonds and currencies such as the yen and the euro were also cut as investors nervously dipped their toes back in the still choppy waters.

China's main equity markets had seen another huge 8 percent drop overnight and Japan's Nikkei .N225 had slumped 4 percent, but the rest of Asia had been calmer overall.

Europe also started on a firmer footing after Monday's global beating had wiped around 450 billion euros ($520.70 billion) off the value of its leading stock markets.

The pan-European FTSEurofirst 300 index .FTEU3 clawed back 1.7 percent of the more than 5 percent it had lost as London .FTSE, Paris .FCHI and Frankfurt .GDAXI bounced 1.5-1.7 percent.

"We are seeing signs of relief with European stocks opening higher despite China extending its losses," said Piotr Matys, an emerging markets expert at Rabobank in London.

"We are trying to decouple but I think it's too early to declare the worst is over though and we are out of the woods. The way I see it is that this is a bit of a technical correction after things got a bit oversold."

The currency market was also calmer. The dollar rose against the yen as it pulled out of a four-day long slide that had left it at a seven-month low.

Traders said a rise in U.S. stock index futures and a brief rebound in Japanese stocks had helped spur dollar-buying against the yen earlier in the day, with the dollar rising to 120.11 yen at one point.

German Bund DE10YT=TWEB and other euro zone government bond yields also rose along with those on U.S. Treasuries US10YT=RR as the previous day's rush for safety eased, although it was far from plain sailing.

Mainland Chinese shares had another calamitous day, with the Shanghai Composite Index.SSEC falling another 8 percent and breaking below the psychological level of 3,000. The index fell 15 percent the previous three days, including an 8.5 percent collapse on Monday.

"Global investors are cannibalizing each other. Calling it a market disaster is not an overstatement," said Zhou Lin, an analyst at Huatai Securities.

"The mood of panic is dominating the market ... And I don't see any signs of meaningful government intervention."

Oil prices also stabilized, however, after plunging more than 6 percent and hitting 6 1/2-year lows.

U.S. crude futures CLc1 traded at $38.73 per barrel, up 1.2 percent on the day, while Brent crude futures last stood at $43.03 after having fallen to $42.23 on Monday. Copper nudged up a fraction too to $4,956 a tonne.

Global stocks, dollar rebound but China smashed again| Reuters

 

[TaiShang]

India is structurally the worst economy out of the BRICS due to its high dependence on imports for everything and need for hot money to finance its deficits. India runs a big currency account deficit and budget deficit and it's through hot money inflows those deficits have been financed. Otherwise the Rupee will lose SIGNIFICANT value. A weaker Rupee will mean the cost of imports will rise big time and the economy gets smaller in dollar terms. India will have to use up its small forex reserves to prop up its currency or let the Rupee go into free fall.

India is a classic case of a structurally flawed economy being propped up by hot money inflows. Hot money can come in quick and solve the problems and can go out just as quick and cause disaster. No country is more dependent and vulnerable to hot money inflows than India.

That pretty much sums up the situation.

 

[Abacin]

While everyone is talking that china is falling, almost all world stock markets are creating multi-years low except china. Chinese stock market is still 50% above 1 year low. The bubble only shows immaturity of Chinese government in regulating financial market and chinese people in risk management. Luckily the bubble bursts before it can seriously damage the reality. Not like United states, Japan and Europe, they live on bubbles created by zero interest or negative interest.

 

[MohitV]

Indians are happy laughing at China. Let's just wait when the inevitable Indian economy faces its problems and its currency problems surface. They will get it. Just remember the crap they say now.

Indians should be one of the last people that should be laughing at China considering the problems in India.

The Rupee was around 60 just a few months ago, now it's at 66. That's a 10% fall.
It will get worse as the Indian economy is currently propped up by hot money inflows. Once that reverses as it always does, watch what happens to the deficit crazy country. They are incredibly dependent on imports and as the rupee declines their problems will get worse.

Let the Indians have their fun now. Because the only time they are happy is not through their own achievements but by the misery of others.

hey dum dum.......looks like u have no idea about economics or global money flow...or stocks..........

...no one is happy about wats hppnin in your market ..... as our own market is getting affected coz of that...many investors lost their money on monday ........


but as on tuesday....our market bounced back....so its a relief

Thank you for the cool-headed and realistic analysis.

Indeed, apart from the global weaknesses that impacts everybody, developed or developing, the entire China thing is the result of some corrections. If the correction hurts global economy, we are sorry for that, but, even that is for a long term greater good.

Some measures are systemic while some others are simply policy response to the ongoing global crisis that never ended since 2008.

The US manufacturing is declining.
Wages are stagnated.
Personal saving is in the red, that is huge personal debt.
Huge national debt that forced to government to close down for a while.
Unsustainable military industrial complex.
Interest rates near zero.
Excessive money printing.

Who in their right mind would think we were in good times? Now the hot money flying back to the US, anticipate hot-money economies to fall into debt and deeper crisis.

Export-dependent economies will also suffer because of declining global demand. So, look if your country has strong domestic production and consumption base.

Commodity (especially hydrocarbon) prices are falling, good for developed export economies of East Asia. Bad for dictatorships of the Gulf. Unfortunately, also bad for Russia but Russia has China as an able importer. Anticipate China to rely less on Saudi Arabia and more on gepolitical partners like Russia and Venezuela.

We will see harder days. If one's economy is not ready for that, sorry. That's historical dialectic.

Thank you for the cool-headed and realistic analysis.

Indeed, apart from the global weaknesses that impacts everybody, developed or developing, the entire China thing is the result of some corrections. If the correction hurts global economy, we are sorry for that, but, even that is for a long term greater good.

Some measures are systemic while some others are simply policy response to the ongoing global crisis that never ended since 2008.

The US manufacturing is declining.
Wages are stagnated.
Personal saving is in the red, that is huge personal debt.
Huge national debt that forced to government to close down for a while.
Unsustainable military industrial complex.
Interest rates near zero.
Excessive money printing.

Who in their right mind would think we were in good times? Now the hot money flying back to the US, anticipate hot-money economies to fall into debt and deeper crisis.

Export-dependent economies will also suffer because of declining global demand. So, look if your country has strong domestic production and consumption base.

Commodity (especially hydrocarbon) prices are falling, good for developed export economies of East Asia. Bad for dictatorships of the Gulf. Unfortunately, also bad for Russia but Russia has China as an able importer. Anticipate China to rely less on Saudi Arabia and more on gepolitical partners like Russia and Venezuela.

We will see harder days. If one's economy is not ready for that, sorry. That's historical dialectic.

no one wants the chinese economy to fall...coz if tat hppns then its effect on the global economy will be very bad..so no onez happy about wats hppnin ryt now........

Excellent post.

The people that laugh at China's problems will get their moment considering the world economy is in trouble.

What goes around comes around.

Let the haters have their fun. Their time will come.



The Indian currency has collapsed 10% in the past month or so. Million roses alright

Just wait for the moment the hot money starts to leave India, Rupee at 66 will look like the good old days. Cracks get covered up when hot money is flowing to the economy, the fun part will be when that same hot money flows out.

India is structurally the worst economy out of the BRICS due to its high dependence on imports for everything and need for hot money to finance its deficits. India runs a big current account deficit and budget deficit and it's through hot money inflows those deficits have been financed. Otherwise the Rupee will lose SIGNIFICANT value. A weaker Rupee will mean the cost of imports will rise big time and the economy gets smaller in dollar terms. India will have to use up its small forex reserves to prop up its currency or let the Rupee go into free fall.

India is a classic case of a structurally flawed economy being propped up by hot money inflows. Hot money can come in quick and solve the problems and can go out just as quick and cause disaster. No country is more dependent and vulnerable to hot money inflows than India.

lol.....sorry to say bro but tat wont effect india........back in 2008 our IT industries were heavily dependent on USA but nothing happened....we are world's largest gold consuming state and have a huge market and have a good home grown industrial/commercial support........ so even in worst conditions our country will survive ......wats hppnin in china is not good for anyone... ..but m sure this will be over soon.......u guys have a good economic leadership

 

[opruh]

While everyone is talking that china is falling, almost all world stock markets are creating multi-years low except china. Chinese stock market is still 50% above 1 year low. The bubble only shows immaturity of Chinese government in regulating financial market and chinese people in risk management. Luckily the bubble bursts before it can seriously damage the reality. Not like United states, Japan and Europe, they live on bubbles created by zero interest or negative interest.

Thanks for this, now I understand better the situation.