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Shanghai Stocks Recover After Volatile Day

  • VOA News

Chinese investors monitor stock prices at a brokerage house in Beijing, Tuesday, Aug. 18, 2015.

Chinese investors monitor stock prices at a brokerage house in Beijing, Tuesday, Aug. 18, 2015.

Stocks in China fluctuated wildly but ended with slight gains Wednesday, as investors nervously wondered if the government will continue its efforts to prop up the market.

Shanghai fell as much as five percent in morning trading before recovering to end the day up 1.61 percent.

Shanghai shares fell over 6 percent on Tuesday. It was the biggest single-day drop since late July, when a massive sell-off prompted Beijing to artificially support the market.

Elsewhere in Asia, shares were mixed. Tokyo closed down about 1.6 percent after the government reported lackluster export figures. Trading was also down in Hong Kong and Seoul, but ended up in Sydney.

Many investors remain nervous that China may end its market support measures, and there are also fears that Beijing could further devalue its currency, the yuan.

Beijing weakened the yuan last week, in a surprise move meant to boost Chinese exports. It also signaled China's economy is worse off than expected.

There are concerns that other countries in the region will respond by weakening their own currencies in order to protect the competitiveness of their export markets.

Vietnam on Wednesday devalued the dong by 1 percent. The trading band around which the dong could be traded was also widened to 3 percent from 2 percent.

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