Asian shares
rebounded on Friday, led by strong gains for battered Chinese stocks
after China suspended its market circuit breaker system and set a firmer
midpoint rate for yuan trading for the first time in nine days.
The
improved sentiment looks unlikely to spill over into Europe, however,
with financial spreadbetters expecting Britain's FTSE 100 .FTSE to open flat, and Germany's DAX .GDAXI and France's CAC 40 .FCHI to start the day 0.5 percent lower.
Shares in Asia were still on track for their biggest weekly fall in more than four months, but Friday's advances seemed to reduce some of the fears that have hit global markets.
China announced late on Thursday that it suspended its new stock market circuit breaker introduced only on Monday as the system failed to reduce market volatility, with some market players even saying it backfired.
The CSI300 index .CSI300 of major Shanghai and Shenzhen stocks was up 2.7 percent and the Shanghai Composite .SSEC climbed 2.6 percent.
Higher Chinese stocks also supported MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS, which erased earlier losses to be up 0.5 percent. That put it on track for a decline this week of about 6 percent, which would be its biggest fall since August.
The People's Bank of China (PBOC) also helped soothe markets by setting a stronger yuan midpoint rate against the dollar.
Shares in Asia were still on track for their biggest weekly fall in more than four months, but Friday's advances seemed to reduce some of the fears that have hit global markets.
China announced late on Thursday that it suspended its new stock market circuit breaker introduced only on Monday as the system failed to reduce market volatility, with some market players even saying it backfired.
The CSI300 index .CSI300 of major Shanghai and Shenzhen stocks was up 2.7 percent and the Shanghai Composite .SSEC climbed 2.6 percent.
Higher Chinese stocks also supported MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS, which erased earlier losses to be up 0.5 percent. That put it on track for a decline this week of about 6 percent, which would be its biggest fall since August.
The People's Bank of China (PBOC) also helped soothe markets by setting a stronger yuan midpoint rate against the dollar.
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