NexAsia PM: Singapore on the verge of technical recession; China shares dip

     

    Singapore

    Singapore’s economy shrank the most since 2012 in the second quarter from the first three months of this year, highlighting the difficulties Asian countries face amid a weakening global economy. The data, however, were advanced estimates and would be revised later on. Still, it reflected the worsening outlook for Asia, whose manufacturing sector comes under fire due to weak global demand for their products.

    Chinese shares ended on Tuesday three straight days of gains recorded on Thursday-Monday, during which the key Shanghai stock index rose 13%. Some analysts blamed the resumption of trading of around 250 companies Tuesday for the decline as they competed for liquidity, while others said there were still doubts about the sustainability of the rebound after weeks of declines. Read on…

    Chinese shares snap three days of gains. The Shanghai Composite Index ended the day 1% lower, dragging along the Hang Seng Index last seen down nearly 1%. The Nikkei closed up 1.5%, its second straight rise. CNBC

    Chinese bank lending on the rise. The broadest measure of new credit available rose to its highest in five months in June, reaching 1.86 trillion yuan ($300 billion), exceeding the 1.240 trillion yuan forecast. Financial Times (paywall)

    Singapore GDP shrinks deeper than forecast. The second-quarter GDP fell by an annualized 4.6% from January-March, worse than economists’ forecasts for a 1.5% contraction. Manufacturing, which shrank 14% during the period, was largely to blame for the economic contraction. Some analysts warned of a technical recession ahead. Bloomberg/Reuters

    Chinese government-owned chipmaker bids $23 billion for Micron Technology. Tsinghua Unigroup will pay $21 a share for the U.S.-based memory chip maker. At its bid price, Tsinghua will pay a 19.3% premium over Micron’s closing price on Monday. The Wall Street Journal (paywall)

    Chinese foreign currency hoard falls at a slower pace. The forex reserves were $40 billion lower in the second quarter, the smallest drop since 2013, to reach $3.69 trillion. In the first three months of 2015, a record $113 billion was slashed from the forex reserves. The slower pace of decline suggests that the amount of funds flowing out of the country has eased. Bloomberg

    ZTE Corp has biggest gain in seven years in HK on share buy back plan. The maker of network equipment surged 37% Tuesday in Hong Kong, while it jumped 10%, a stock’s daily limit, in Shenzhen. The company said it plans to spend up to 1 billion yuan ($161 million) to buy back shares in China. ZTE resumed trading in Hong Kong Tuesday after July 9’s suspension. Bloomberg

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