June 2, 2011 (Chinavestor) Chinese stocks got clues from the DJIA the day before and fell hard on Thursday. The Hang Seng Index (INDEXHANGSENG:.HSI) gaped significantly lower, ending the day 1.6% off. The Shanghai Composite Index (SHA:000001) fell just as much as investors feared the U.S. economy might not be genuine.
The decline was universal in both key Asian markets. Stocks that fell outnumbered those that advanced five to one among components of the Hang Seng Index (INDEXHANGSENG:.HSI). Looking at the 50 largest components of the Shanghai Composite Index (SHA:000001), only eight stocks managed to stay in the black, the rest fell.
Chinese ETFs gave back all of their gains on Wednesday from a day before. The decline was universal, small can large caps fell universally.
Investors are awaiting U.S. jobs data with cautious optimism to find direction for the market.