Shanghai stocks recovered on Wednesday after plunging more than 11 <g data-gr-id="33">per cent</g> in the past three <g data-gr-id="23">sessions</g> but there were mixed results for other Asian markets, with some unable to sustain a morning rally. Buyers were given a healthy lead from Wall Street, which climbed Tuesday for the first time after five sessions of losses as dealers await a key US Federal Reserve policy meeting later in the day.
Shanghai closed up 3.44 <g data-gr-id="16">per cent</g> or 126.17 points at 3,789.17 on easing concerns about government measures to support share prices instituted at the start of the month to prevent a market meltdown. Hong Kong was up 0.51 <g data-gr-id="17">per cent</g> in the afternoon and Sydney advanced 0.71 <g data-gr-id="18">per cent</g>, or 39.52 points, to end at 5,624.2.
Tokyo ended 0.13 <g data-gr-id="20">per cent</g>, or 25.98 points, lower at 20,302.91 and Seoul was marginally down, shedding 1.48 points to 2,037.62. The region started with a burst after <g data-gr-id="27">US</g> and European bourses surged Tuesday after the previous day's losses that were sparked by Shanghai's 8.48 percent Monday plunge -- its worst in eight years. Wall Street snapped a five-day losing streak thanks to strong earnings from shipping giant UPS as well as a bump in petroleum stocks. The Dow climbed 1.08 <g data-gr-id="21">per cent</g>, the S&P 500 gained 1.24 percent and the Nasdaq jumped 0.98 per cent. That followed healthy rises in London, Paris and Frankfurt.
"Often when a lot of stocks get washed out, we get a rebound," Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors, told Bloomberg News. The US central bank ends a two-day policy meeting on Wednesday and traders will be poring over its comments to get a handle on its plans for raising interest rates.
Sensex too up 104 points
Putting its last 4 days of losing stretch behind, the benchmark BSE Sensex sprinted again, rallying 104 points to close above the 27,500 level, mostly on <g data-gr-id="48">value-buying</g> by participants ahead of July derivatives expiry. A likely rate hike from the US Fed this year, many experts feel, will not cause <g data-gr-id="50"><g data-gr-id="49">much</g> disruptions</g> in emerging markets, including India, which supported the upside.