Updated throughout the day
September 15
Good evening everyone. China has now posted it biggest two-day fall in three weeks. The Shanghai Composite Index closed for the day down 3.5%, meaning it has now lost 7% of its value this year. The Guardian reported today that economists are now concerned that the Chinese economy is weakening faster than the official data suggests, showing growth of around 7% this year. Research from energy consultancy Wood Mackenzie suggests the Chinese economy grew at an annual rate of 5.3% in the second quarter of 2015, and just 4.5% in Q3. Here is how the markets ended elsewhere in Asia:
- Hang Seng: -0.49%
- Jakarta Comp: -1.01%
- KLSE Comp: +0.46%
- Nikkei 225: +0.34%
- Straits Times: -0.92%
- Seoul Comp: +0.32
The Wall Street Journal reports that oil prices were also choppy in Asian trade today. The Brent crude swung between gains and losses on the back of volatile Chinese markets amid signs the US oil producers are suffering more from low prices.Here is what else you need to know:
Alibaba takes a hit after Barron’s article rebuttal. US investors sent shares of Alibaba Group stock tumbling Monday following a critical article from Barron’s – despite a detailed rebuttal, The stock fell as much as 4.9% Monday, touching $61.48. Wall Street Journal.
Credit Suisse nears deal to settle claims over dark pool Credit Suisse is expected to pay at least $80m to settle allegations that it misled clients about its dark pool, trading venues meant to allow asset managers to trade large blocks of shares without moving the price against them. Financial Times.
Malaysia wants state companies to repatriate foreign earnings. Malaysia wants its state-owned funds to repatriate some earnings from the more than 500 billion ringgit ($115 billion) worth of investments made abroad. This is seen as a way to help stem the decline of the nation’s currency, which has weakened by 26.3% against the dollar over the past year. Nikkei
North Korea Nuclear site “in operation”. North Korea says its main nuclear facility, the Yongbyon complex, has resumed normal operations. The country was improving its nuclear weapons “in quality and quantity”, a state-run news agency said. Yongbyon’s reactor was shut down in 2007. BBC
Beijing builds third airstrip on contested South China Seas islands. China appears to be building a third airstrip in contested territory in the South China Sea, a US expert said on Monday, citing satellite photographs taken last week. Experts say the strip is long enough for most Chinese military aircraft, giving Beijing greater reach into Southeast Asia. SCMP
Toshiba troubles continue with new losses and falling sales. Japan’s troubled Toshiba has posted a first-quarter net loss for the three months to June as sales fell to their lowest point in two and a half years. BBC
Haze chokes Indonesia, Malaysia and Singapore. Smoke from huge Indonesian forest fires has created a cloud of smog hanging over Singapore as it prepares to host the annual Formula 1 Grand Prix. The seasonal fires are caused by slash-and-burn clearances on the islands of Sumatra and Borneo. BBC
Thousands in Japan protest against Abe security bill. Tens of thousands of protesters surrounded the Diet building in Tokyo late Monday amid growing public opposition to controversial national security bills that Prime Minister Shinzo Abe aims to have passed this week. SCMP (paywall)
Russia pointing tanks at Syrian airfield. U.S. officials say it’s not clear what Moscow’s intentions are, but the country has been pressured globally to explain its support of Syrian President Bashar al-Assad. Reuters
Deutsche Bank to cut one quarter of its total staff. The bank will ax about 23,000 jobs, mainly with layoffs in technology activities and a spin off of its PostBank unit. Deutsche CEO John Cryan took control of the firm in July, and promised to slash costs. Reuters
Aussie PM ousted. Australian PM Tony Abbot will be succeeded by Malcolm Turnbull as the country’s conservative party shakes up its approach to many hot issues, including the economy, climate change, and same-sex marriage. Wall Street Journal
You won’t believe this:
Social media stops UK kids from sleeping. More than one out of every three 12 to 15-year-olds wakes in the night at least once a week just to use social media, a UK study suggests. It also found more than one in five did so almost every night, leaving most constantly tired at school. BBC
Breastfeeding Army soldiers post viral pic. A group of active duty soldiers at Fort Bliss posed for a photo in uniform, while breastfeeding their babies. The photographer, an Air Force veteran and mother, wants to draw attention to the working moms balancing their babies with a difficult job. Buzzfeed
Photo: Scott Maxwell