Asian markets began to shake off a global rout Wednesday after China’s central bank took steps to address the country’s deteriorating economy.
But a volatile Shanghai market, which has now lost nearly a fourth of its value in the past five sessions, kept investors on edge.
In Japan, the Nikkei 225 index finally acquired some traction, bolting higher by 570.13 points, or 3.2%, to 18,376.83
In Hong Kong, the Hang Seng Index fell again, losing 324.57 points, or 1.5%, to 21,080.39
Still, analysts and investors have expressed concern that the People’s Bank of China’s moves, which many anticipated, aren’t going to be enough to arrest a selloff that has roiled markets from currencies to commodities and stocks.
The Japanese yen was 0.3% weaker against the U.S. dollar at ¥119 compared with late Tuesday in Asia. Earlier in the week, the yen traded as strong as ¥116.46, as investors tend to flock to the currency in periods of volatility.
The Australian dollar and South Korean won were steadier, roughly flat from Tuesday’s close in Asia, after hitting multiyear lows recently
CHINA
In China, the CSI 300 dropped 17.23 points, or 0.6%, to 3,025.69,
Investors sold Chinese stocks, even after its central bank late Tuesday cut interest rates for the fifth time since late last year and lowered the amount of deposits banks are required to hold to boost lending.
China’s rout and the volatility in global markets is also adding to uncertainty over when the U.S. Federal Reserve might raise interest rates from near zero, a move that is expected to rock emerging markets and stocks that have benefited from years of loose U.S. monetary policy. Many analysts previously had expected a September rate increase.
The latest losses in China mark the second round of heavy selling in its shares, which lost about a third of their value earlier in the summer. The Shanghai Composite Index is up less than 18% from late November when Beijing began its current easing cycle and officials rallied investors to invest in the stock market.
China’s surprise move to devalue its currency by almost 2% two weeks ago has magnified worries that its slowdown is worse than official data showed, casting a shadow over emerging market economies that rely on China for growth.
In other markets
In Korea, the Kospi index gained 47.46 points, or 2.6%, to 1,894.09
In Singapore, the Straits Times Index subsided 13.29 points, or 0.5%, to 2,873
In Taiwan, the Taiex index added 39.95 points, or 0.5%, to 7,715.59
The NZX 50 subtracted 35.51 points, or 0.6%, to 5,577.78
The ASX 200 Index hiked 35.52 points, or 0.7%, to 5,172.78
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