U.S. stock indices dropped on Thursday on concerns over strength of the Chinese economy.
The Dow Jones Industrial Average lost 392.14 points, or 2.3%, to 16,514.37. The S&P 500 plunged 47.18 points, or 2.4%, to 1,943.08. The Nasdaq Composite dropped 146.34 points, or 3%, to 4,689.43.
The U.S. Department of Labor reported that the number of initial unemployment claims declined by 10,000 to 277,000 in the week ending January 2 pointing to positive progress in the labor market. However economists had expected a more significant decline to 275,000.
This morning in Asia Hong Kong Hang Seng gained 1.06%, or 215.83, to 20,549.17. China Shanghai Composite Index rose 2.74%, or 85.77, to 3,210.77. The Nikkei declined 0.06%, or 9.96, to 17,757.38.
Asian stock indices outside Japan advanced. Chinese stocks rose after yesterday's plunge. Today Chinese authorities suspended the recently implemented tool, which automatically stops trading once stocks drop 5-7%. Experts explained that the system encouraged investors to sell stocks after declines reached 5%.