Asian Stocks Steady After Steep Losses, Chinese Markets Gain

By Ambar Warrick 

Investing.com-- Most Asian stock markets steadied on Tuesday after a series of steep losses on growing fears of a looming recession, while Chinese markets recovered on expectations of more stimulus measures by the government. 

Regional markets took some relief as the dollar paused its seven-day rally and fell from 20-year highs. U.S. Treasury yields also appeared to have paused their ascent. 

China’s bluechip Shanghai Shenzhen CSI 300 index rose 0.7%, while the Shanghai Composite index gained 0.8%. Major bank stocks rose after the People’s Bank of China injected about $24.7 billion of liquidity into the sector via repo market operations.

The move is intended to boost liquidity in the banking sector ahead of the quarter's end, and is also an extension of the central bank’s vow to increase liquidity and stimulate economic growth.

Asia’s largest economy is struggling to revive economic growth after a series of COVID-related lockdown measures this year. Data on Tuesday also showed that Chinese industrial profits fell further in August. 

Japan’s Nikkei 225 index gained 0.5%, while Taiwan stocks added 0.4%. Regional markets appeared to have paused their losses after falling sharply over the past three sessions. 

But sentiment remained constrained as traders feared a looming economic slowdown across the globe. Weak economic data from Europe, coupled with a brewing currency crisis in the UK severely dented risk-heavy markets this week.

Southeast Asian markets in particular saw extended losses, given their higher exposure to risk. Philippine stocks were by far the worst performers for the day, plummeting 4.5% as investors feared prolonged economic disruptions from Typhoon Noru. 

The typhoon made landfall in the country on Monday, causing widespread disruptions due to heavy rainfall and high-speed winds. 

Thai stocks lost 0.6%, while Indonesian stocks shed 0.5%. Asian markets also had a weak lead-in from Wall Street indexes, which fell overnight in volatile trade.

U.S. stocks appeared to have slowed their pace of losses. Futures also indicated a potential recovery later on Tuesday. But markets remained wary of a dead cat bounce, given that the factors behind the recent stock market rout were still in play.

Rising interest rates across the globe are set to severely crimp liquidity and halt any major gains in the stock market. Asian stocks in particular tumbled this year as the Fed kicked off a monetary tightening cycle. 

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    London
    EC2A 2BN
    United Kingdom


    T:  + 44 ( 0 ) 203 857 2000
    E:  info@ofmarkets.com
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    Dubai
    United Arab Emirates
     
    T: + 00 971 44 22 888
    E:  info@ofmarkets.com
     

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: