ADR Shares Close Mixed; Property, Mining Stocks Slump After China Move

   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.

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