Most markets across the region lost ground yesterday as investors watched Chinese stocks suffer another turbulent session.
The Shanghai Composite index fell as much as 5.7 per cent before rallying to finish 2.6 per cent lower at 2,915.80. Investors were unsettled by comments from premier Wen Jiabao that China's economy faced “uncertainties”. The market's partial recovery left the Composite index above its five-day moving average for the fourth day in a row. Analysts said this might lead to a technical rebound.
Banks were out of favour amid concerns about earnings. Industrial Bank fell 7.1 per cent to Rmb34.04 as its interim figures disappointed. Industrial and Commercial Bank of China shed 2.9 per cent to Rmb4.70. China Construction Bank lost 4.3 per cent to Rmb5.53.