China Stocks May Take Breather Ahead of July Data
The Chinese market is likely to consolidate on Wednesday ahead of of a batch of July data Thursday and after three days of gains.
Tuesday saw Shanghai Composite Index weave in and out of positive territory before closing 0.13 percent higher at 2157.62. Weakness in financials and utility stocks limited gains.
The Shanghai Stock Exchange unveiled more reforms to better protect investors' interests. It is calling on listed companies' board members to vote on major decisions in person, rather than via other methods — to promote due diligence.
Stocks to Watch:
Shanghai Power - The utility company posted a 67 percent jump in first-half net profit, which came in at 306 million yuan ($48 million), even as operating revenue fell 20 percent. Earnings growth was attributed to cheaper coal, higher tariffs, and technology improvements.
First Tractor - China's oldest and largest agricultural machinery maker debuts in Shanghai, having priced its offering at 5.4 yuan per share (85 cents), or 14.4 times earnings. The share sale raised around 800 million yuan ($126 million). First Tractor is expected to enjoy a positive first day performance due to its strong market position. Its shares are already listed in Hong Kong.
Coming Up This Week:
WEDNESDAY: New Zealand Unemployment Rate, Japanese Core Machinery Orders, Chinese Consumer Price Index, Chinese Producer Price Index (PPI), Australian Unemployment Rate
THURSDAY: Japanese Interest Rate Decision, Bank of Japan Press Conference, Japanese Household Confidence, Chinese Retail Sales, Chinese Fixed Asset Investment, Chinese Industrial Production, Indian Manufacturing Output, Indian Industrial Output, South Korean PPI, Australian Monetary Policy Statement, Singaporean National Holiday
FRIDAY: Japanese Industrial Production, Bank of Japan Monthly Report, Indian Bank Loan Growth
—By Cheng Lei, Special to CNBC.com; Reuters contributed to this story