You could think Japan is in a really better health than China, and meanwhile you may be true, it's not the reason the markets picked to the increase of the NIKKEI today. The reason is the one trending a lot from the markets: they expect the government will do stimulus measures. To explain, Japan's exports rose in September only of 0.6% compared to the 3.4% expected (yes, that's a big difference), and imports got a -11.1% compared to September, 2015. Meanwhile, many China's companies are plunging today, doesn't matter if we talk about energy, oil, brokers, all suffered here. Numbers for now: NIKKEI is up +1.91% or +347.13 pts with 18,554.28 pts, meanwhile HSI is going -0.37% or -86.39 pts with 22,989.22 pts. ASX 200 is experiencing a soft day with +0.24% or +12.73 pts at 5,248.31 pts. Shangai Composite worst performer did -3.47% or -118.81 pts with 3,306.52 pts. Finally, KOSPI is as soft as ASX 200 with +0.18% or +3.62 pts at 2,042.98 pts.
I am quite surprised that China has suffered some losses over the course of the day. Considering the business deals going on with the UK at the moment I would have thought it would have created a rise in share values.
Well, that's still that. It's not because some businesses are still investing in China (and we may question their interests and forecasts given the current situation), that the markets won't go lower. Everything was based on exceptional growth mainly because factories came in a place of the world were there was no 21st Century factories. And they have wages that would be impossible to get in developed countries. But China is hitting his limits, it's clear and obvious, especially if they want to not be producer for the rest of the world, but also caring about their mainland market. As well, inventories with a lot of stocks contribute to its slowdown, after all.
