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Daily Scan: Mainland shares tumble; China FX reserves post largest monthly drop

By NexChange
Capital Markets

Updated throughout the day

September 9

Good evening everyone. PBOC Governor Zhou Xiaochuan may have said that the multi-trillion dollar “correction” is “almost done,” but that doesn’t mean that mainland stocks didn’t want to do some correcting of their own. The SHCOMP lost all of its gains today, finishing the session down 2.52%, while Shenzhen retraced most of its earlier 3.7% rally to close up 0.2%. Even the nation’s forex reserves did some correcting, falling $94 billion to $3.56 trillion to notch up its largest monthly drop on record.

Here’s how the rest of Asia is faring:

Nikkei 225: +0.38%
Hang Seng Index: -1.23%
Straits Times Index: -0.4%

The European market seems to be doing much better though; the FTSE 100 climbed 1.3% to 6,119, the DAX jumped 1.2% to 10,161, while the CAC spiked 1.2% to 4,580. Here’s what else you need to know:

Chinese GDP revised lower to 7.3%. In a surprise move, China’s National Bureau of Statistics revised its annual economic growth rate for 2014 from 7.4% to 7.3%, largely thanks to a slowdown in the services industry. The primary (agriculture) and secondary (manufacturing & construction) sectors however still looks pretty good. Reuters

Toshiba posts $318m annual loss. Reeling from its recent accounting scandal, the Japanese conglomerate has reported a net loss of 37.8 billion yen ($318 million) for the past financial year, citing asset impairment changes and other losses. The firm had at one time expected a 120 billion yen profit. Nikkei

Experts reject official account of Mexico student deaths. An international committee reviewing the case of 43 missing college students in Mexico said there was no evidence to support the official line that the students were executed by a drug gang, fueling suspicion of police involvement. New York Times

Fiat Chrysler, GM merger on “high priority.” Fiat Chrysler CEO Sergio Marchionne had some pretty interesting stuff to say over the weekend.  Despite being rebuffed earlier this year by the U.S.’ largest carmaker, Marchionne said that a merger between GM and Fiat Chrysler Automobiles remains a “high priority for FCA,” believing that the move would “be the best possible strategic alternative for us and for them.” Reuters

Falling oil prices hit Saudi Arabia. With crude oil prices practically cut in half, the world’s largest oil producer is currently working on slashing unnecessary expenses and delaying state projects. Which is ironic because they were the ones who opened up the taps to begin with. They have however, built reserves and decreased public debt to near-zero levels. BBC

 Nissan to repeat airbag recall. Federal regulators are worried that Nissan’s recall last year of almost one million vehicles did not correct a malfunction of the passenger airbag, meaning the automaker might have to recall the vehicles again.

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