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Daily Scan: Shanghai up 3%; rest of Asia tanks

By NexChange
Capital Markets

Updated throughout the day

October 8

Good evening everyone. A-shares did a mighty fine job of playing catch-up Thursday with the Shanghai Composite finishing the session up 3% at 3,143.35 – above the psychologically important 3,100 level.  The Shenzhen Composite rallied  4% tO 1,785.39. Hong Kong shares slids on what traders are calling profit-taking, while over in Japan, a slump in machinery orders continued to weigh on the region’s stocks. Here’s how they fared today:

Hang Seng Index: -0.7%
Hang Seng China Enterprises Index: -1%
Nikkei 225: -1%
Topix: -0.8%
Straits Times Index: -0.4%

Over in Europe, things aren’t looking so hot either. The U.K.’s FTSE 100 is down over 0.4% ahead of the Bank of England’s rate decision, while Germany’s DAX – spanked by a mixed bag of data – fluctuated throughout the day. Its currently up 0.2%.

Here’s what else you need to know:

Uber China is toast. Didi Kuaidi, Uber’s Beijing-based rival, scored a massive win against its San Francisco-based nemesis after it secured a license to operate private cars in Shanghai. This is a huge blow to Uber, not only because Shanghai is a major market, but also because other Chinese cities typically follow suit. Wall Street Journal (paywall)

Glass one-quarter full: Greek unemployment…is better than expected. In the latest of Greece’s mounting good reports, the embattled nation’s unemployment rate was revised to 25% from 25.2%, beating analysts’ estimates of a 25.4% reading. That’s 2.75 million unemployed people. Financial Times (paywall)

Sony to sell stake in world’s largest music publisher. Sony, the embattled Japanese electronics giant, is selling its stake in Sony/ATV Music Publishing – which it co-owns with the estate of Michael Jackson. Sony/ATV owns the copyrights to songs from the Beatles, Marvin Gaye, and Taylor Swift, and is currently pegged by music vets at $2 billion. Wall Street Journal (paywall)

Largest Chinese private merger in the works. Meituan.com and Dianping Holdings, two of China’s largest online consumer service companies, are reportedly close to sealing the deal on the country’s largest private merger. The deal – valued at $20 billion – will create a combined entity that will dominate China’s online services market from movie tickets to food deliveries. Financial Times (paywall)

President Obama apologizes for the Kunduz airstrike. Obama called and directly apologized to Dr. Joanne Liu, president of Doctors Without Borders, for the airstrike in Afghanistan that left 12 medical staff members and at least 10 patients dead. Doctors Without Borders has called the airstrike a war crime, and an "attack on the Geneva Conventions." CNN

Deutsche Bank expects big losses. The German bank says it foresees a 6.2 billion euro loss when it reports its third-quarter earnings results on October 29. The board will recommend "a reduction or possible elimination" of its common-share dividend for 2015.

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