Mainland Chinese stocks ended mildly lower Tuesday, staging a major recovery after sustaining steep losses during the session, as speculation that policy makers would elaborate on the ongoing credit crunch pulled in bargain buyers.
In Japan, the Nikkei 225 fell 93.44 points, or 0.7%, to 12,969.34
Hong Kong’s Hang Seng Index recovered 41.74 points, or 0.2%, to 19.855.72
Gains were led by stocks beaten down recently, with conglomerate Wharf Holdings Ltd. rising 3% and New World Development Co. rising 3.3%.
CHINA
The Shanghai Shenzhen CSI 300 doffed 5.79 points, or 0.3%, to 2,165.42
The recovery came on news that policy makers from multiple Chinese agencies, including the People’s Bank of China, and the banking and capital market regulators, would address the media later this week at the Lujiazui Forum — a conference on major financial issues facing China.
Meanwhile, People’s Bank of China deputy director Ling Tao said at a news briefing in Shanghai on Tuesday that the recent volatility in the short-term interest rates in the money markets were likely to be "temporary." He said the central bank will guide interest rates to a "reasonable range," without elaborating on what constituted such a range.
Major Chinese banks led the recovery, despite losses suffered by most stocks.
Shares of Agricultural Bank of China Ltd. and Bank of China Ltd. climbed 1.2% each in Shanghai.
Shares of several other lenders cut their losses, with China Minsheng Banking Corp. dropping 0.8% and China Citic Bank Corp. losing 0.6%.
In other markets;
Taiwan’s Taiex Index lost 94.80 points, or 1.2%, to 7,663.23
Singapore’s Straits Times Index moved higher 15.62 points, or 0.5%, to 3,089.93
Korea’s Kospi Index slid 18.38 points, or 1%, to 1,790.63
In New Zealand, the Exchange 50 Gross Index dropped 47.05 points, or 1.1%, to 4,316.99
In Australia, the S&P/ASX 200 slipped 13.18 points, or 0.3%, to 4,655.96
