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Chinese shares recover early losses after rout | |
(35 minutes later) | |
Mainland Chinese shares recovered early losses amid volatile swings, following Monday's suspension of trading, which led to a global equities sell-off. | |
The Shanghai Composite was down 0.4% at 3,321.87 after opening more than 3% lower, while the Hang Seng also changed direction to head up 0.1% to 21,342.09. | |
Trading in Shanghai was suspended early on Monday after it triggered a new circuit breaker mechanism. | Trading in Shanghai was suspended early on Monday after it triggered a new circuit breaker mechanism. |
But regulators said on Tuesday it may restrict stock sales to stem falls. | |
The China Securities Regulatory Commission said that it would consider restricting the proportion of shares that major shareholders could sell during a given period of time. | |
Analysts said investors were waiting to see if Beijing could stem the latest selling in Chinese stocks and whether more measures would be introduced. | |
But Bernard Aw, market strategist at trading firm IG said Beijing was arguably more concerned about economic growth than the stock market. | |
"Furthermore, it could look really bad if they have to throw in more measures when they are in the process of withdrawing the rescue measures," he said in a note. | |
The circuit breaker rule that suspended trading nationwide for the first time on Monday was created after sharp falls last summer and was meant to curb market volatility in China. | |
Monday's 7% fall spooked global markets. | |
Overnight, US benchmark indexes lost up to 2% as concerns grew that the dive in the Chinese stocks was the start of another volatile period after last summer's dramatic market rout. | Overnight, US benchmark indexes lost up to 2% as concerns grew that the dive in the Chinese stocks was the start of another volatile period after last summer's dramatic market rout. |
Oil continues to weigh | |
The addition of escalating tensions in the Middle East on oil prices also dented investors' confidence. | The addition of escalating tensions in the Middle East on oil prices also dented investors' confidence. |
Oil prices were flat after rising as much as 4% on the brewing dispute between Saudi Arabia and Iran. | Oil prices were flat after rising as much as 4% on the brewing dispute between Saudi Arabia and Iran. |
South Korean shares also headed higher after a senior finance ministry official said that the government would take action to stabilise the market if needed, following Monday's steep plunge. | |
The Kospi was up 0.7% to 1,932.69 points. | |
Japan's Nikkei 225 index also recovered losses to head up 0.2% to 18,494.76, but Australia's S&P/ASX 200 lost 1% to 5,220.60. | |