Singapore: Asian stocks fell for the first time in four days after the former US Federal Reserve chairman Alan Greenspan warned that Chinese equities face a “dramatic contraction”.
Stocks faltered after he said that the rally in Chinese shares “is clearly unsustainable”.
Greenspan joins China’s central bank governor Zhou Xiaochuan and Asia’s richest man Li Ka-shing, in expressing concern about a China stock “bubble”.
Shares also declined after China’s securities regulator ordered brokerages to step up their programme of educating investors, adding to the central bank’s warnings about risks in the nation’s equity market.
Apart from China’s CSI 300, which fell 0.5% on Thursday, Japan’s Nikkei 225 Stock Average slid 0.1% to 17,696.97. Declines were limited after Mizuho Securities Co. lifted its rating on Japan’s five largest trading houses, including Itochu Corp. and Marubeni Co.
The Morgan Stanley Capital International Asia-Pacific Index lost 0.3% to 149.52, halting a three-day, 1.8% advance.
Benchmarks fell elsewhere in the region, except in New Zealand, Pakistan and the Philippines. Markets in Hong Kong and South Korea were closed for holidays.