Asia shares retreat again as China stocks' recovery short-lived
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| People walk past an electronic board showing the benchmark Shanghai and Shenzhen stock indices, on a pedestrian overpass at the Pudong financial district in Shanghai, China, January 4, 2016. |
Asian shares
retreated in choppy trade on Tuesday, led by Chinese stocks, whose
early rebound fizzled out as investors remained unconvinced by Beijing's
moves to restore market confidence following a disastrous start to the
new year.
Prospects were brighter for European shares, however, as financial spreadbetters predicted Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI will all open about 1 percent higher.
E-Mini futures for the U.S. S&P 500 ESc1 also hinted at stabilization with a rise of 0.2 percent.
After a 7 percent plunge in Chinese stocks on Monday, the Shanghai Composite index .SSEC swung between positive and negative territory before closing down 0.3 percent.
The CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen ended the day up 0.3 percent.
Still, the volatility weighed on the rest of the region, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edging down 0.3 percent after a brief stint in positive territory.
Japan's Nikkei .N225 also gave up tentative earlier gains to end the day down 0.4 percent. Australian shares closed 1.6 percent lower.
An uneasy peace settled over markets after the People's Bank of China injected a generous slug of liquidity into domestic markets to keep borrowing costs down, but that didn't last long.
Prospects were brighter for European shares, however, as financial spreadbetters predicted Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI will all open about 1 percent higher.
E-Mini futures for the U.S. S&P 500 ESc1 also hinted at stabilization with a rise of 0.2 percent.
After a 7 percent plunge in Chinese stocks on Monday, the Shanghai Composite index .SSEC swung between positive and negative territory before closing down 0.3 percent.
The CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen ended the day up 0.3 percent.
Still, the volatility weighed on the rest of the region, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edging down 0.3 percent after a brief stint in positive territory.
Japan's Nikkei .N225 also gave up tentative earlier gains to end the day down 0.4 percent. Australian shares closed 1.6 percent lower.
An uneasy peace settled over markets after the People's Bank of China injected a generous slug of liquidity into domestic markets to keep borrowing costs down, but that didn't last long.
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