Business News

Asia markets rebound, Glencore surges after crash

Latest Update: September 30, 2015 | 200 Views

Hong Kong: Asian stocks recovered slightly Wednesday from a mass sell-off in the previous session, with emerging currencies ending a tough quarter on a high but analysts warned of further volatility ahead.

Mining giant Glencore almost halved Tuesday´s 30 percent losses after it moved to reassure investors its business remained robust, following rumours in financial circles it might soon be delisted as it is buffeted by weak commodity prices and China´s slowdown.

The next focus point is on a speech due to be given by Federal Reserve boss Janet Yellen later in the day, with hopes she will shed more light on the bank´s plans for raising US interest rates.

Regional equities and risk assets went into a sharp reverse Tuesday, tracking a slump in New York and Europe after another batch of disappointing Chinese data fanned fresh fears about the world´s number two economy.

But buying picked up on Wednesday, the last day of a torrid quarter that has seen trillions wiped off global valuations, sparked by Beijing´s shock devaluation of its yuan currency last month. Traders were given a mostly positive lead from Wall Street, while the Dow and S&P 500 edged up.

Hong Kong-listed shares of Glencore, which has been hammered by soft resources demand in China that led brokerage Investec to question its future if prices did not improve, were the stand-out winner as it rallied after Tuesday´s crash.

The firm rose 15 percent in early trade after the debt-laden Swiss company insisted its business was “operationally and financially robust”.

“We have positive cash flow, good liquidity and absolutely no solvency issues,” it said in a statement.

The firm´s London-listed stock ended up 16.95 percent Tuesday, recovering a good part of the 29-percent loss it suffered the previous day.

In Asian trade Wednesday Tokyo rose 1.87 percent by the break, Hong Kong added 0.80 percent, Sydney was 0.98 percent higher and Shanghai put on 0.72 percent. Seoul, which was closed on Monday and Tuesday for a public holiday, eased 0.62 percent.



Top of the Hour