Chinese stocks tumbled Tuesday, bringing two-day losses to more than 15%, while other markets in Asia started to turn negative again after a bounce in earlier trading.
In Japan, the Nikkei 225 index tumbled another 733.98 points, or 4%, to 17,806.70
Meanwhile, the slight change in tide in earlier trading pushed the Japanese yen weaker, after the currency hit its strongest level since March amid Monday’s jitters.
The currency is 0.7% weaker against the dollar, at ¥119.18, helping boost the Nikkei. The yen, which traded as high as ¥116.46 against the U.S. dollar on Monday, is considered a haven during times of volatility.
In Hong Kong, the Hang Seng Index finally broke out of its doldrums, gaining 153.39 points, or 0.7%, to 21,404.96
Some markets managed to hold on to their gains after a rebound in the morning.
Banks led Australia’s S&P ASX 200 higher, with shares of Westpac Banking Corp. up 4.5% and Macquarie Group Ltd. up 4.8%.
The ripple effects of China’s slowdown continued to bruise currencies in regional economies that rely on China’s demand, but the selling abated Tuesday.
The Korean won was last down 0.3% at 1193.76 against the U.S. dollar compared with late yesterday in Asia. Still it is slightly stronger than its bottom yesterday, when it hit a fresh four-year low of 1207.37 against the U.S. dollar.
The Australian dollar was 0.6% stronger at $0.7192 U.S. from the previous day’s close, having also hit its lowest since 2009 yesterday of $0.7051 U.S.
Gold is down 0.3% at $1,149.70 an ounce but remains near a six-week high.
CHINA
In China, the CSI 300 erased 232.61 points, or 7.1%, to 3,042.93,
The lack of support from Beijing for the market continued to spook investors.
In its latest effort to counter intensifying capital outflows from a weakening economy and a tumbling stock market, China’s central bank on Tuesday injected more cash into the financial system.
The People’s Bank of China offered 150 billion yuan ($23.40 billion U.S.) of seven-day reverse repurchase agreements, a form of short-term loan to commercial lenders, as part of a routine money market operation. The bank injected a net 150 billion yuan into the financial system last week, marking its biggest pump priming exercise since the early February.
But the move fell short of expectations for larger measures, such as a cut to bank’s reserve requirements which could free up hundreds of billions of yuan for loans.
Some analysts have said that even a cut in reserve ratio requirements of banks won’t be enough to rescue the market.
Fears of a pullback in demand from China, one of the world’s largest consumers of oil, metals and food, has sent prices of commodities to fresh lows.
In other markets
In Korea, the Kospi index picked up 16.82 points, or 0.9%, to 1,846.63
In Singapore, the Straits Times Index moved ahead 42.9 points, or 1.5%, to 2,886.29
In Taiwan, the Taiex index got out of its funk in a big way, charging ahead 265.30 points, or 3.6%, to 7,675.64
The NZX 50 recovered 5.98 points, or 0.1%, to 5,613.29
The ASX 200 Index recouped 135.97 points, or 2.7%, to 5,137.25
