The Wall Street Journal reports, that asian stocks stabilized on Tuesday, with many markets trading around the break-even mark as the region paused after a global selloff that saw heavy losses in recent sessions.
The region was relatively calm after three days of downward movement. Japan's Nikkei dropped just 0.2% to 14980.16 after plunging a total of 5.2% over the last three sessions. Hong Kong's Hang Seng Index ended less than 0.1% down at 21960.64, South Korea's Kospi added 0.3% to 1916.93 and Singapore's Straits Times Index was up 0.3% late in Asia.
Australia's S&P/ASX 200 made the biggest move lower, down 1.3% at 5175.10, as the market played catch-up with a global selloff that started late last week. A public holiday on Monday meant Sydney missed a brutal session that put many of the region's markets more than 2% lower.
Global markets have been under pressure since last Thursday, when data pointed to a contraction in China's manufacturing sector. This triggered selling in many emerging markets, with countries such as Turkey and Argentina in focus, which then spread to developed markets like the U.S. and Japan.
There was some relief after China avoided what could have been a destabilizing hit to its financial system after a major shadow lender arranged a bailout for investors who bought an investment product that was about to go bust. China's largest bank by assets, Industrial & Commercial Bank of China, had sold the product and its shares were up 0.9% in Shanghai.
Also in China, the Shanghai Composite rose 0.3% to 2038.51 as Shaanxi Coal Industry Co. had a strong debut after raising 4 billion yuan ($661 million) via an initial public offering earlier this month—the largest IPO in mainland China since new listings resumed at the beginning of the year. Shares in China's biggest coal producer soared 13.8%.
