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China's Shanghai Composite index drops more than 6% | |
(about 3 hours later) | |
The Shanghai Composite share index in China plunged more than 6% on Thursday, the biggest fall since January. | |
The index, which has risen by 50% since March, ended the day down 321.45 points, or 6.5%, at 4,620.27. | |
Analysts cited a number of reasons for the drop, including a number of brokerages tightening lending requirements on margin financing. | |
Another wave of new share offerings due next week is also expected to remove liquidity from the market. | |
In Hong Kong, the Hang Seng index also ended lower, dropping 2.2% to 27,454.31. | |
However, shares had a better session in Japan, where the market rose for the 10th consecutive session - its longest rally for more than a quarter of a century. | |
Japan's Nikkei 225 index closed up 0.4% at 20,551.46, and has now chalked up its longest winning streak since a 13-day run in February 1988. | Japan's Nikkei 225 index closed up 0.4% at 20,551.46, and has now chalked up its longest winning streak since a 13-day run in February 1988. |
Investor confidence was boosted by retail sales showing year-on-year growth of 5% in April, reversing three months of falls. | |
The Nikkei index has gained 5% during the 10-day run. | The Nikkei index has gained 5% during the 10-day run. |
Shares of Honda were up 1.7% despite the automaker expanding its recall of cars in Japan over airbag inflators made by Takata to 340,000. Honda had already recalled millions of cars earlier this month. | Shares of Honda were up 1.7% despite the automaker expanding its recall of cars in Japan over airbag inflators made by Takata to 340,000. Honda had already recalled millions of cars earlier this month. |
In Australia, the S&P/ASX 200 ended 0.2% lower at 5,713.10 after data showed that business investment in the first quarter of 2015 saw the biggest fall for more than six years. | In Australia, the S&P/ASX 200 ended 0.2% lower at 5,713.10 after data showed that business investment in the first quarter of 2015 saw the biggest fall for more than six years. |
Investment fell 4.4% in the quarter, against forecasts of a 2.4% drop. | |
South Korean shares recovered from heavy falls earlier in the session, with the benchmark Kospi index closing up 0.2% at 2,117.77. | South Korean shares recovered from heavy falls earlier in the session, with the benchmark Kospi index closing up 0.2% at 2,117.77. |