“Psychologically, this is not the time to talk a lot about mutual market access when you’ve just put out a fire�, Hong Kong Exchanges & Clearing Ltd. Chief Executive Officer Li said at a conference in Singapore yesterday. “That’s driving sentiment elsewhere, but fundamentally the trade data would indicate that the macro story in China remains weak�. In a separate move, the finance ministry said Monday that China will offer investors who hold shares for more than a year relief from a 20 percent dividend tax, with those holding for more than a month only having to pay half the tax. Ahead of the data release Shanghai was down 0.24 per cent, Hong Kong added 0.55 per cent and Tokyo shed 0.76 per cent. Sydney, where several firms with key links to China are listed, was up 1.05 per cent after a recent sell-off. There was better news out of Japan, where the Nikkei Stock Average climbed 0.38%, while the yen edged 0.14% lower against the dollar. July 27 – After a few weeks of relative stability, share indexes slump again, with SSEC plunging 8.5 percent on the day, sparked by talk of a government withdrawal from market-rescue steps and worries over the health of the economy. Following Asia’s lead, spreadbetters anticipate Britain’s FTSE 100 to open up zero.1 %, Germany’s DAX to rise zero.2 %, and France’s CAC 40 to realize zero.2 %. The Fed’s deputy chairman said earlier that the USA central bank still was on track for a rate hike this year, but Friday’s report fueled uncertainty about whether it will feel confident enough to act. China last reported trade data on August. 10, the day before its yuan devaluation sparked a rout in emerging- market currencies and triggered more than $8 trillion of global equity losses. While speculation is growing that the Federal Reserve won’t raise interest rates this month because inflation remains low, some market participants aren’t convinced. Shanghai: Attempts by Chinese policymakers and regulators to soothe the country’s jittery markets with promises of financial market reforms and assurances the economy is stabilising had limited impact on Monday, with stocks tumbling in late trade. The euro stood little changed at $1.11670 (EUR=). CURRENCIES: Trading in currency markets was similarly subdued with the euro flat at $1.1150 and the dollar up 0.3 percent at 119.43 yen. Oil prices fell more than 3% on Monday as the drop in Chinese share prices and record North Sea production added to concern about global oversupply. Brent crude futures rose zero.7 % to $47.94 after a three.7 % fall on Monday. They still traded below the 50 percent retracement of their rally late August to $54.32 from 1/2-year low of $42.23.

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