| Overview Stock markets Share prices Currencies Commodities Gilts & Bonds UK Earnings | ||
 | London | Wall Street | Asia | |
Shanghai Composite Index
Last Updated at 16 Jan 2015, 02:50 ET| value | change | % |
|---|---|---|
| 3376.50 | + +40.04 | + +1.20 |
Chinese shares slumped as brokerages fell on a crackdown by authorities over margin trading, in which investors borrow cash to buy shares.
The securities regulator punished top brokerages for illegal activities in their margin business, which had fuelled previous rallies.
The brokerages were banned from opening new margin trading accounts for three months, according to media reports.
The Shanghai Composite was lower by 6.3% to 3,163.72 by midday trade.
The fall comes ahead of key economic data due from China on Tuesday.
The Asian giant is set to release gross domestic product figures, which are expected to show that it has missed its annual growth target of 7.5% for the first time in 15 years.
Meanwhile, data on Sunday showed new home prices fell significantly in December for a fourth straight month.
In Hong Kong, the benchmark Hang Seng index was down 1.1% to 23,828.87.
Rest of Asia higherJapanese shares were higher as investors hoped for more stimulus from the European Central Bank's policy meeting later this week.
The benchmark Nikkei 225 was up 0.9% at 17,007.89.
Bucking the trend, Sharp shares slid over 9% to the lowest since December 2012, after reports that the company is set to slide back into the red this financial year.
Australian shares were higher despite a private survey showing that inflation hit its slowest pace in two-and-a-half years in December as fuel prices fell.
The TD Securities-Melbourne Institute's monthly measure of consumer prices was unchanged in December from November's 0.1%.
The annual pace slowed sharply to 1.5% from 2.2% in November, which was the lowest reading since July 2012.
The benchmark S&P/ASX 200 was up 0.1% at 5,305.3.
In South Korea, shares were also higher despite slumping oil prices leading producer prices in December to fall by the fastest pace in 19 months on an annual basis.
The producer price index fell 2% from a year earlier, marking the sharpest annual decline since May 2013. It was also a fifth consecutive month of decline.
The benchmark Kopsi was higher 0.9% at 1,904.91 points.