Fate of Japanese and Chinese financial markets closely linked


ALL eyes will be on Chinese stock prices on Monday to see whether they can retain the comparative stability that returned in the final two trading days of last week after an earlier rout. Anxiety will be especially marked in Tokyo markets, analysts say.

Last week's dramatic events in China have driven home firmly and clearly in these markets the message that Japan's economic and financial fortunes are very closely connected to those of China.

However, results of research provided to The Business Times by one leading investment banker suggest that China's real economy may not suffer as badly as feared initially from the 30 per cent drop in Chinese stock prices over the past year.

"The equity...

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to