Mainland Chinese shares plunged after three of the nation™s biggest brokerages were stopped from adding margin-trading accounts. Australian mining shares rose after U.S. oil capped its first weekly advance since November and copper climbed in London.
The Shanghai Composite Index tumbled 4.9 percent by 10:34 a.m. in Tokyo, as brokerages plummeted. BHP Billiton Ltd., the world™s biggest mining company, was the biggest support to the MSCI Asia Pacific Index. Futures on the Standard & Poor™s 500 Index were 0.2 percent higher in holiday trade. West Texas Intermediate oil slipped 0.8 percent and copper in London rose after its biggest two-day gain since September 2013. The Swiss franc slipped 0.4 percent against the dollar.
Chinese regulators are tightening control of margin investing amid concern that a six-month, 63 percent stock surge may lead to instability. Stocks in the U.S., where markets are closed for Martin Luther King Day, jumped Jan. 16 as a rebound in oil tempered fallout from the Swiss National Bank abandoning a cap on the franc and lower earnings at Goldman Sachs Group Inc. The European Central Bank and the Bank of Japan meet on policy this week while Greece holds an election Jan. 25 that may see an anti-austerity party take power.
Source : Bloomberg