Asian markets mostly rebounded on Wednesday after a broad selloff in the previous session, with Wall Street’s rally providing some relief.
However, Chinese markets were the outlier, with the CSI 300 index plunging over 6.8% (at 2.20pm AEDT), marking a significant decline amid ongoing market volatility.
Hong Kong's Hang Seng index extended its losses, falling 1.3% after suffering its worst single-day performance in 16 years on Tuesday, when it dropped 9.4%.
Concerns around the Chinese economy and policy uncertainty have weighed heavily on both indices.
In contrast, Japan’s Nikkei 225 rose 0.6%, while Australia’s S&P/ASX 200 climbed by 0.2%, as markets across the region reacted positively to Wall Street’s overnight gains.
South Korea’s markets remained closed on Wednesday due to a public holiday.
Investors are paying close attention to central bank decisions from New Zealand and India. The Reserve Bank of New Zealand (RBNZ) slashed its policy rate by 50 basis points to 4.75%, following a recent cut in August. Meanwhile, the Reserve Bank of India (RBI) is expected to hold its key rate steady at 6.5%.
Overnight in the U.S., major indices rallied as oil prices eased, driven by a reduction in geopolitical tensions. The S&P 500 gained 1%, while the tech-heavy Nasdaq Composite rose by 1.5%. The Dow Jones Industrial Average also saw modest gains of 0.3%.
West Texas Intermediate (WTI) oil futures dropped 4.6% on Tuesday as traders monitored the situation in the Middle East. Israel’s expected response to missile attacks and ongoing U.S. diplomatic efforts to prevent a wider regional conflict have had a significant impact on energy markets.
