Stocks in China Drop Down by 2%, Oil Prices Slip

In a forecast on July 2, the US money manager Vanguard has said the easing of policies by Chinese policy markers is unlikely. The Consumer, brokerage, healthcare shares were among the biggest falls on July 2. The property sales of China declined amid the indication of slow sales growth and tight credit conditions. Asia-Pacific stocks were mixed on July 2 as the investors looked into a closed-watched report of US jobs set to be released later.

China’s stocks were among the biggest declines regionally as the Shanghai composite dropped down 1.95% to around 3,518.76. At the same time, the Shenzhen component decreased 2.448% to around 14,670.71. The Hang Seng index of Hong Kong declined 1.8% on the trading day to 28,310.42.

In Japan, the Nikkei 225 nudged 0.27 percent higher to reach 28,783.28, whereas the Topix index increased 0.88 percent to 1,956.31. Kospi of South Korea finished the trading day with a little change at 3,281.78. Australia’s shares escalated due to the advancement of S&P/ASX 200 by 0.59% to reach 7,308.60. The broadest index of MSCI of Asia-Pacific shares outside Japan was weaker by 0.95%. The blue-chip CSI300 index declined 0.95 percent to around 5290.86. The healthcare sector subindex and the CSI300 consumer staples field skid 1.35% and 1.15%, respectively.

Investor focus on July 2 was mostly on the monthly jobs report of the US Labor Department that was set out on the same day. Economists expect the non-farm payrolls to increase by 706,000 jobs in June 2021, and the unemployment rate fell from 5.8% to 5.6%, as per Dow Jones.

Oil Prices Declined

Oil prices were lower in Asia trading hours with a decline in the international benchmark Brent crude oil futures from 0.45% to $75.50 per barrel. The US West Texas Intermediate Crude futures cast 0.35% to $74.97 per barrel. On July 1, the US crude futures hit their topmost level since the year 2018. At the same time, Brent escalated 2 percent.

The change in prices was because of the delay in the meeting to July 2 that was held among OPEC and its allies. The energy alliance is generally called OPEC+. The delay came after the objection of the United Arab Emirates to a new oil deal. Analysts at OCBC Treasury Research said that their bullish tilt on the crude remains. They are expecting some sort of compromise which might resolve the issue by July 2.

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