China stock regulator restricts 24 trading accounts for suspected irregularities

The benchmark Hang Seng Index added 115.51 points to 24,619.45, on turnover of HK$115.27 billion (S$20.3 billion).

China Securities Regulatory Commission (CSRC) will increase checks on program trading blamed for a few of the recent stock market volatility.

CSRC spokesperson Zhang Xiaojun said the agency is examining a few cases and the Shanghai and Shenzhen exchanges have restricted trading of 24 accounts until October 30 as they were suspected of misleading other investors by frequent orders and cancellations.

Asian stocks were mixed on Thursday as Japanese equities reverted to gains while Chinese shares declined. Overnight, U.S. economic output in the second quarter came in slightly slower than expected at an annualized 2.3%, another piece of patchy data that casts uncertainty over the timing of an expected rise in U.S. interest rates.

Several companies made big moves after reporting their quarterly results. Shares of AVIC Heibao Co. are up 5.4%. Japan Airlines gained 1.8 percent after reporting quarterly profit that more than doubled from a year earlier.

The company saw its net profit more than triple in the April-to-June quarter, helped by strong sales of its PlayStation 4 games and camera sensors. Market heavyweight Fast Retailing shed 0.9 percent, Fanuc dropped 0.3 percent and Softbank Corp slipped 0.2 percent. The Nasdaq composite rose 17.05 points, or 0.3 percent, to 5,128.78. Energy and industrial stocks dropped before Saturday’s manufacturing data.

The sources said the CSRC was focusing on positions taken through both the Shanghai-Hong Kong Stock Connect trading link and via offshore-listed products that track mainland stocks, including index futures and exchange traded funds (ETFs).

Siam Cement slid 1.94 percent to 506 baht, while oil company PTT fell 0.95 percent to 314 baht. The medical device maker has signed a definitive agreement to buy Curative Medical, a privately-held Chinese provider of ventilation and breathing devices to treat sleep disorders. Against the euro, the dollar was up 0.6 percent at $1.1022.

“Such a practice is closely watched by regulators in the US as well”.

South Korea’s KOSPI declined 18.59 points or 0.91 percent to end at 2,019.03. Investors remain focused on earnings.

“We expect Fed voters to pull the trigger in September, but for the path to interest rate normalization to be a long one given the global risk profile, the lack of inflationary pressure, and concerns over what moving too quickly may do to asset markets, particularly the dollar, and the wider economy”, said an analyst at Australia and New Zealand Banking Group.