BEIJING (AP) — Chinese stocks fell Tuesday for a fourth day, hitting an eight-month low amid signs Beijing was no longer buying shares to stem a price slide, and Japanese stocks also dropped. But other Asian and European markets bounced back from a day of heavy losses.
U.S. stock futures were also up after Monday’s global sell-off and a tumultuous day on Wall Street, where the Dow Jones closed down 3.6 percent. Analysts said it was unclear whether the rebounds in some markets were indications that worst was over or a reprieve in a longer-term bear market.
The Shanghai Composite Index lost 7.6 percent to 2,964.97 points, adding to Monday’s 8.5 percent loss and taking the benchmark to its lowest level since Dec. 15. Some 2,000 stocks out of about 2,800 on China’s two mainland exchanges fell by the 10 percent daily limit, according to Hexun, a financial news website.
“The stock market might fall further in the near future because investors are in a panic,” said market analyst Zhang Yang at Sinolink Securities in Shanghai.
Beijing appeared to be abandoning a strategy of having a state-owned company buy shares to stem the slide. There have been no signs of large-scale purchases by the China Securities Finance Corp. during the past week.
“The fear is that the Chinese economy is slowing at an alarming pace and that the domestic policy makers have fallen well behind the curve,” said Credit Agricole CIB in a report. “There is therefore little that” American, European or Japanese central bankers “could do to lift the market risk sentiment.”
Tokyo’s Nikkei 225 average was in positive territory for parts of the day, but ended up closing down 4 percent at 17,806.70 after sliding 4.6 percent Monday.
But other markets in Asia posted modest recoveries. Hong Kong’s Hang Seng index rose 153.39 points, or 0.7 percent, to 21,404.96, while Sydney’s S&P ASX 200 gained 2.7 percent to 5,137.30 and Seoul’s Kospi index and Singapore’s Straits Times index also rose.
In morning trading in Europe, France’s CAC-40 advanced 1.5 percent to 4,449.93 after tumbling 5.4 percent Monday while Germany’s DAX was up 1.4 percent to 9,787.97 after dropping 4.7 percent Monday.
Dow Jones index futures were up 2.7 percent, while S&P 500 index futures were up 2.8 percent, an indication the U.S. market was set to open higher.
Wall Street had a stomach-churning day Monday, when the Dow plunged more than 1,000 points at one point before finishing down 588.40 points, or 3.6 percent, at 15,871.35. The Standard & Poor’s 500 index slid 77.68 points, or 3.9 percent, to 1,893.21, and is now in “correction” territory, Wall Street jargon for a drop of at least 10 percent from a recent peak. The last market correction was nearly four years ago.
In currency markets, the dollar declined to 119.4810 yen from Monday’s 118.6930 yen. The euro edged down to $1.1544 from the previous session’s $1.1591
Oil rebounded from Monday’s steep declines.
Benchmark U.S. crude gained 59 cents to $38.83 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $2.21 on Monday to close at $38.42.
Brent crude, used to price international oils, advanced $1.02 to $43.70 per barrel in London. It fell $2.77 the previous day to close at $42.69.
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