Shanghai rebound fails to avert Asia stock retreat | mb.com.ph | Philippine News
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Shanghai rebound fails to avert Asia stock retreat

Hong Kong – Shanghai stocks saw another day of volatility Thursday, swinging sharply from big early losses to end on a high while most other Asian bourses tracked a Wall Street slump in the latest rout of world markets.

Any hope Wednesday’s regional rally might presage a recovery from 2016′s bloodbath was wiped out with an immediate sell-off in the opening minutes.

Tokyo plunged almost four percent in the first hour and Shanghai fell below its lowest levels of the summer rout.

However, Shanghai ended slightly more positively – rising two percent – as investors moved to pick up cheap stocks.

Overnight, a heavy sell-off on Wall Street Wednesday cut short a two-day rally and smothered hopes of a sustained turnaround on battered global markets.

There was no clear catalyst for the plunge which saw the blue-chip Dow Jones Industrial Average losing 364.81 points, or 2.2 percent, to 16,151.41.

Shanghai slumped almost three percent in the morning session – meaning it had lost about 20 percent since a December peak and making it the worst performer among 93 benchmark indexes tracked by Bloomberg.