By Mia Lamar
International companies trading in New York closed mixed Monday
in the wake of China's surprise move to clamp down on rebounding
property prices.
The Bank of New York index of ADRs inched up 0.1%, to
134.59.
Traders were reacting to China's decision late Friday to try to
slow down house price rises, with the government imposing higher
down payments and mortgage rates, and stricter enforcement of a 20%
capital gains tax on property transactions.
Any slowdown in China's property market may curb demand for
global commodities, and potentially cool spending and growth in
Asia's biggest economy.
The Latin American index fell 0.5%, to 323.85, and the emerging
markets index slumped 0.8%, to 283.65.
The news from China came as bad news for some Brazilian shares
as the country is a major exporter of commodities to that
country.
Shares of mining giant Vale SA (VALE, VALE5.BR, VALE5.FR) fell
2.9%, to $18.02. Shares of steelmaker Gerdau SA (GGB, GGBR3.BR)
fell 0.5%, to $8.02.
The Asian index fell 0.4%, to 136.27.
Shares of Beijing-based property developer Xinyuan Real Estate
Co. (XIN) tumbled 15%, to $5.04, mimicking action in local Asian
markets, where several large developers fell by the maximum 10%
trading limit, including China's largest property developer, China
Vanke (000002.SZ).
The European index rose 0.4%, to 126.28, the session's only
gainer.
Among notable movers in Europe, shares of France Telecom (FTE,
FTE.FR) climbed 5.2%, to $10.15, after Morgan Stanley lifted the
firm to overweight from underweight.
Mining firms posted some of the biggest losses, with shares of
Rio Tinto PLC (RIO, RIO.LN) shedding 2.5%, to $50.48, and Russia's
Mechel OAO (MTL, MTLR.RS) falling 3.5%, to $5.24.
Write to Mia Lamar at mia.lamar@dowjones.com