Chinese shares turn positive after rout

Mainland Chinese shares reversed early losses on Tuesday, following Monday’s suspension of trading, which led to a global equities sell-off.

The Shanghai Composite was up 0.7% 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.

The 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.

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.

South Korean shares also headed higher after a senior finance ministry official told Reuters that the government would take action to stabilise the market if needed, following Monday’s steep plunge.

The Kospi was up 0.2% to 1,922.62 points.

Asia’s biggest market – Japan’s Nikkei 225 index was down 0.4% to 18,369.77, while Australia’s S&P/ASX 200 lost 0.9% to 5,222.90.

Analysts said investors were waiting to see if Beijing could stem the latest selling in Chinese stocks and whether more measures would be introduced.

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.

Source: Chinese shares turn positive after rout – BBC News

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