A report released by Reuters this morning indicated that only one person was waiting outside the Apple store (AAPL, quote) in Shanghai’s financial district. But the Apple store on Shanghai’s posh Huaihai Road tells a different story.
Stock price action offers signs of encouragement for China’s beleaguered market. The Shanghai Index climbed +2.9% on impressive volumes, taking markets back to where levels were before the big run-up in September and breaking through key technical levels above 2000.
Overnight Asian emerging markets reacted strongly, and negatively to St. Louis Fed President James Bullard diminishing the need for the FOMC to begin a third round of quantitative easing (QE3) anytime in the near future.
Overnight emerging markets closed higher despite disappointing data from China, where the preliminary manufacturing survey hit a nine month low of 47.8 for August, compared to July’s print of 49.3.
Now that all the major telecommunications firms have released their June Chinese 3G subscriber numbers, investors are afforded a peak into the state of the world’s largest mobile phone market.
While high beta stocks significantly outperformed in the United States, the same cannot be said for Asian markets, many of whom struggled on the back of Japan. Nippon underperformed as the result of poor trading in financials and power companies.