Communication shares lead market plunge
China’s A-share markets saw broad-based losses on Monday, led by communication shares, as market expectations of a further Fed interest rate cut were dampened by a solid US payroll report.
The benchmark Shanghai Composite Index slumped by 2.58 percent, or 77.70 points, to finish at 2,933.36.
The smaller Shenzhen Component Index fell by 2.72 percent to end at around 9,186.29 points, while the ChiNext Index shed 2.65 percent to finish at 1,506.66 points.
The combined turnover of the two bourses came to 468.2 billion yuan (US$67.8 billion), expanding from 374.3 billion yuan during the previous trading day.
Losses were seen across the board, with computer companies, communication shares and automakers among the biggest losers. Shares of Shenzhen Tatfook Technology Co Ltd, an end-to-end network and industrial technology solutions provider, declined by 7.28 percent to stand at 14.14 yuan a share.
On Friday, the US Labor Department announced that 224,000 new jobs had been added to the country’s economy in June, well above the forecast of 165,000.
The jump came as a surprise to many after months of slowing job growth and US stocks fell in response. Investors were expecting an interest rate cut by the Federal Reserve later this month.
US stock futures were reported to be trading lower on Monday morning.