Chinese shares rally to lead rebound in Asian markets
Chinese stocks in Hong Kong and Shanghai, as well as shares in Japan, South Korea and Singapore, advanced Wednesday on anticipation about further stimulus programs. The Shanghai Composite soared 6.1%, Hong Kong's Hang Seng China Enterprises surged 5% and the benchmark Hang Seng gained 2.5%. Tokyo's Nikkei 225 climbed 0.9%, South Korea's Kospi jumped 3.3% and Taiwan's Taiex rose 2.4%. Australia's S&P/ASX 200 added 1.6%, New Zealand's NZX 50 gained 2.1% and Singapore's Strait's Times edged up 0.8%. MarketWatch (04 Mar.)
*Emerging market indexes have lost alot of value to date, and will likely lose further. I believe they will lose more than the US based on the lagging effect and by then the US will be rebounding and first to fully recover. But this will all take some time, years in fact.
Emerging-market indexes outshine U.S. counterparts
Benchmark indexes in Brazil, Taiwan, China, Israel and 10 other emerging markets have been outpacing the S&P 500 for the past few months. Analysts said the trend might not last long because key markets are starting to turn. "Investors are looking to these markets [to signal] when the global economy will get back on track," said Bruce Zaro of Delta Global Advisors. MarketWatch (03 Mar.)
Citi's dividend suspension might mark end for preferred shares
Private investors might abandon the banking sector after Citigroup announced that it will stop paying dividend on some of its preferred shares, in addition to all common shares, analysts and traders said. Although the dividend suspension was essentially priced into the market already, the formal announcement "is a watershed event" that will probably end the ability of banks to sell similar preferred securities in primary capital markets, said Ricardo Kleinbaum, a trading sector specialist at BNP Paribas. Reuters (03 Mar.)