Asia: Markets mostly lower post PBoC move

Most key Asian stocks closed lower on Wednesday, after a rocky day for China’s main index.

The Shanghai Composite ended 1.28% lower after falling nearly 4% in the morning.

Ending 1.3% lower compared to the 8.5% and 7.5% declines of Monday and Tuesday was progress, SpreadEx financial analyst Connor Campbell said.

”Any session that ends in an eight month low is still going to sting, and the lack of consistency during the session’s trading suggests that investors are continuing to clutch at straws,” Campbell said.

Campbell said the latest PBoC rate cut was “insufficient”, although it may have prevented a third day of complete collapse.

Still in China the smaller Shenzhen Composite exchange closed 3.07% lower while the start-up focused Chinext was down by 5.06%.

Around the region, Hong Kong’s Hang Seng index was down 0.84% while the Sensex was down 0.30%, and South Korea’s Kospi was down 2.57%.

Japan’s Nikkei 225 was up 3.20%, turning around a six day losing streak off progress in China. Early morning volatility gave way to bargain hunters as major stocks fell to attractive prices. The yen was at ¥119.50 to the dollar.

Down under Australia’s ASX 200 was higher at the close on Wednesday, up by 0.69%, driven by Energy, IT and Resources led shares higher. Mining sector supplier Bradken was the best performer, rising 13.45%.

In New Zealand the NZX50 fell by 0.6% as Auckland International Airport led the market lower and retirement accommodation provider Metlifecare declined after reporting its annual earnings.