The Shanghai Composite Index fell 1.5% to 3,974 on Friday, its lowest close in a month, while the Shenzhen Component Index declined 1.3% to 13,376, a more than one-month low. Risk appetite across Asian markets weakened as rising crude oil prices and higher US Treasury yields pressured equities.
Oil prices remained elevated after Trump said he did not expect the Iran war to end before the November midterm elections and that oil prices were unlikely to fall before then. At the same time, a jump in US Treasury yields strengthened the dollar, following weaker-than-expected demand in the US Treasury Department’s first expanded buyback operation.
On the domestic front, investors turned their attention to a series of key economic indicators due next week, including data on housing prices, fixed-asset investment, industrial production, retail sales, and the unemployment rate.
Major decliners included Zijin Mining Group (-4.7%), CMOC Group (-5.8%), CATL (-1.7%), and NAURA Technology (-1.8%). For the week, both the Shanghai Composite and the Shenzhen Component were on track to post overall declines.
