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.
It’s been perverse dynamic in the equity market for Chinese shares. Investors have been torn between the hard- versus soft-landing debate for the last year as economic data continues to weaken.
Chinese technology stocks are exciting for emerging market investors. Just like American tech companies it’s hard to know who will succeed. Here are five technology stocks that investors should keep an eye on.
With the Chinese economy (FXI, quote) slowing, a number of Chinese ADRS have struggled of late in spite of a strong run in American equities. This includes Chinese search engine Baidu (BIDU, quote) which has decreased recently as the result of both a less impressive Chinese economy and stock-specific news.
Overnight emerging markets trading was interesting to say the least. With multiple straight down sessions in a row and Japan’s NIKKEI suffering the most — five straight sessions to the downside — market participants began to pick through the rubble after strong earnings from Caterpillar (CAT, quote) and Boeing (BA, quote).
Overnight markets in Asia took a beating across the board on escalated fears the emerging market of Greece will not be able to pay off its debt. There are growing concerns the euro zone will be forced to cut Greece loose or approve some kind of debt forgiveness, wiping out money owed for the bailout.
China’s manufacturing data recovered somewhat in July, climbing to a five-month high of 49.5 compared to 48.2 for the previous reading in June and giving nervous emerging markets a bit of confidence that not everything in the global economy is bad.