Market Commentary - Foreign Markets
China Market falls 0.9% on geopolitical tensions As on : 24-May-24  16:19

Mainland China share market finished session in negative territory on Friday, 24 May 2024, as escalating geopolitical tensions with Taiwan in the Taiwan Strait and deterring hopes of cutting US interest rates in the near future weighed down sentiments.

Investors closely monitored regional tensions as China's military carried out a second day of war games around Taiwan on Friday, with drills to test their ability to seize power and control key areas, exercises it has said were launched to punish Taiwan's President Lai Ching-te.

At close of trade, the benchmark Shanghai Composite index declined 0.88%, or 27.52 points, to 3,088.87. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.1%, or 19.26 points, to 1,734.80. The blue-chip CSI300 index sank 1.11%, or 40.31 points, to 3,601.48.

CURRENCY NEWS: China's yuan declined against a greenback on Friday, as the country's central bank set weaker official guidance rate and the greenback held firm on following strong U.S. economic indicators. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1102 per U.S. dollar, weaker than the previous fix of 7.1098. In the spot market, the onshore yuan CNY=CFXS yuan opened at 7.2420 per dollar and was changing hands at 7.2455 at midday, 33 pips weaker from the previous late session close.

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