China’s Shanghai Composite plunged further this morning, opening more than six per cent down – but other major indices in Asia regained ground in morning trading as investors made the most of yesterday’s bloodbath.
China was taking the brunt of lingering gloom, with Shenzhen Composite also falling by around 5.5 per cent. Having opened 6.4 per cent down the Shanghai Composite has been highly volatile. At pixel time it was down 6.5 per cent.
Japan’s Nikkei is also trading 1.27 per cent down.
However, other Asian markets are showing signs of decoupling from the plunge after having also opened lower.
Read more: £72bn knocked off FTSE 100 as markets respond to deteriorating China outlook
Hong Kong’s Hang Seng is up 0.3 per cent, while Australia’s ASX 20 is up 2.75 per cent and Taiwan’s Taiex is up 3.3 per cent.
“There appears to be buyback as many markets look oversold after panicky selling in the last few days. Even the shares that had little business ties with China were sold,” Yukino Yamada, senior strategist at Daiwa Securities, told Reuters.
Before Asian markets opened, the Dow Jones futures opened more than 100 points up. Futures for the S&P 500 and Nasdaq also showed signs of advancing.
The People’s Central Bank of China has so far left the situation to the market since stocks took a pounding on Monday.
This follows a battering of stocks across the world yesterday, led by loses in China and Asia, which knocked £72bn off the FTSE 100 and caused the biggest fall in US stocks since 2011.