Most Asian markets bounced back after PBOC move

<p>However, Shanghai closed 1.3 per cent down.</p>

Asian markets bounced back from a global rout today (August 26th) after China’s central bank took steps to stabilise stocks.

The People Bank of China (PBOC) cut its main interest rate by 0.25 percentage points to 4.6 per cent today (August 25th) in a bid to calm stock markets after shares tumbled for two consecutive days.

However, volatility remained on the Chinese market, with the Shanghai Composite Index falling nearly four per cent in the morning, before rising more than four per cent just before the close, and dropping again to close down 1.3 per cent at 2927.29.

Some analysts said the central bank move might not be enough. "They probably were not hard enough and strong enough to give the market a sign that they will support it in the next two three weeks, when things are going to get really volatile," said Evan Lucas, a market strategist at brokerage firm IG. "They haven’t outlined any specific measures to support the mainland market," he added.

Japan's Nikkei 225 stock index gained 3.2 per cent to 18,376.83, South Korea's Kospi was up 2.6 per cent to 1,894.09 and Australia's S&P ASX/200 rose 0.7 per cent to 5,172.80. Hong Kong's Hang Seng index fell 0.5 per cent to 21,305.17.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.