MSCI said the decision has "broad support from global institutional investors" with whom the company consulted, adding that it was primarily as a result of the positive impact on the accessibility of the China A market of both the Stock Connect program and the loosening by the local Chinese stock exchanges of pre-approval requirements that can restrict the creation of index-linked investment vehicles globally.
The index giant said 222 China A large-cap stocks will be included on a gradual basis beginning in 2018, in the widely used emerging markets index (EMI), which has about $1.5 trillion of assets benchmarked to it. Prices of U.S. West Texas Intermediate were in bear territory after falling more than 20 percent from recent peaks overnight.
"Oil is the main driver" for regional losses, said Tareck Horchani, head of Asia-Pacific sales trading at Saxo Capital Markets.
Asian shares climbed as Chinese companies advanced in Hong Kong and Shanghai ahead of MSCI Inc.'s decision expected Tuesday on whether to add A-shares to its global indexes, while the weaker yen supported Japanese equities. In addition, there are concerns about whether China's volatile market will adapt to global best practices.
Index provider MSCI on Tuesday chose to include mainland China stocks, or A-shares, in its global emerging-market benchmark index.
"We think Argentina could be initially hit, because the expectation for the inclusion was pretty high", said Lucy Qiu, emerging market analyst at UBS Wealth Management in NY.
Lieblich said on the press call that the oil producing nation's highly anticipated Saudi Aramco initial public offering "will have absolutely no bearing on our decision to include the Saudi Arabia index into the EM index". In defiance of Moody's surprise move, Chinese stocks even closed higher and shrugged off the fresh credit concerns.
Vegas Golden Knights hold cards as NHL expansion draft nears
If one of those players ends up signing with the Golden Knights, he'll count as Vegas' selection from that team. A Blues player who today has golf shirts hanging in his closet and plans to report to training camp in St.
Rumor Central: Jimmy Butler to Celtics still an unlikely scenario
With that in mind, they could offer the Bulls the sort of "rebuilding package" they might want for a player of Butler's caliber. Johnson of the Chicago Tribune reported the Phoenix Suns could be the third team in a multi-club trade involving the Cavs.
Dems say they'll slow Senate work over secretive care bill
The clock is ticking. "They're ashamed of the bill", said Senate Minority Leader Chuck Schumer to the New York Times Thursday . Senate Republican Marco Rubio said he hoped there would be "plenty of time for debate and analysis" on such a crucial bill.
Listing Aramco in Riyadh would approximately double Saudi Arabia's weighting in the emerging markets index, fund managers estimate, possibly making the kingdom a bigger presence in the index than Russian Federation and Mexico. "Tech stocks are getting a short-term boost from the Hong Kong proposal to set up a new exchange".
The addition to the watch list should result in "substantially improved valuations, liquidity and foreign inflows to the country's market", according to Jaap Meijer and Michael Malkoun, analysts in Dubai at Arqaam Capital Ltd. It can therefore be a first step in accessing China's onshore equity market in a reassuring and controlled manner, before moving on to bigger and better things. The Chinese practice such as halting trading when company news is released also discouraged major American investment indexes from jumping in.
A US-based firm is to announce Wednesday whether it will finally include Chinese shares in a key global stock index after three previous rejections. Restrictions on currency trading in 2015 prompted the review.
The review is the fourth straight year MSCI has considered adding the mainland-traded stocks.
Investors have taken notice of iShares MSCI Austria Investable Market Index Fund (EWO) shares.
For global equity funds, China only represents 3 percent of global equity funds right now in terms of weighting.