Shanghai rebounds after sell-off, other Asian markets mixed

Shanghai stocks recovered Wednesday after plunging more than 11 percent in the past three sessions but there were mixed results for other Asian markets, with some unable to sustain a morning rally.

Buyers were given a healthy lead from Wall Street, which climbed Tuesday for the first time after five sessions of losses as dealers await a key US Federal Reserve policy meeting later in the day.

Shanghai closed up 3.44 percent or 126.17 points at 3,789.17 on easing concerns about government measures to support share prices instituted at the start of the month to prevent a market meltdown.

Hong Kong rose 0.47 percent, or 115.51 points, to 24,619.45 and Sydney advanced 0.71 percent, or 39.52 points, to end at 5,624.2.

Tokyo ended 0.13 percent, or 25.98 points, lower at 20,302.91 and Seoul was marginally down, shedding 1.48 points to 2,037.62.

The region started with a burst after US and European bourses surged Tuesday after the previous day's losses that were sparked by Shanghai's 8.48 percent Monday plunge -- its worst in eight years.

Wall Street snapped a five-day losing streak thanks to strong earnings from shipping giant UPS as well as a bump in petroleum stocks.

The Dow climbed 1.08 percent, the S&P 500 gained 1.24 percent and the Nasdaq jumped 0.98 percent.

That followed healthy rises in London, Paris and Frankfurt.

"Often when a lot of stocks get washed out, we get a rebound," Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors, told Bloomberg News.

The US central bank ends a two-day policy meeting on Wednesday and traders will be poring over its comments to get a handle on its plans for raising interest rates.

While expectations are for an increase in either September or December, Naeimi said the events in China and elsewhere would likely have an impact on policymakers' decision-making.

"The Fed will be focused on global conditions. What's happening globally can't be totally ignored," said Naeimi.

On currency markets the dollar eased to 123.44 yen from 123.56 yen in New York, while the euro changed hands at $1.1073 and 136.78 yen against $1.1058 and 136.64 yen.

Oil prices continued to fall on worries about the global economy as well as a worldwide supply glut.

US benchmark West Texas Intermediate for September delivery slipped 14 cents to $47.84 a barrel and Brent crude for September gave up 13 cents to $53.17.

Gold fetched $1,096.20 an ounce compared with $1,091.80 late Tuesday.

In other markets:

-- Mumbai rose 0.38 percent, or 104.20 points, to close at 27,563.43.

IT firm Infosys gained 2.04 percent to 1085.20 rupees but conglomerate ITC fell 2.35 percent to 303.95 rupees.

-- Bangkok gained 0.67 percent, or 9.42 points, to 1,417.49.

Telecoms company Advanced Info Service added 2.06 percent to 248.00 baht, while Airports of Thailand rose 1.38 percent to 293.00 baht.

-- Jakarta ended up 0.38 percent, or 17.96 points, at 4,732.72.

Palm-oil producer Astra Agro Lestari gained 1.10 percent to 20,700 rupiah, while Bank Central Asia fell 1.15 percent to 12,850 rupiah.

-- Kuala Lumpur lost 0.04 percent, or 0.71 points, to 1,698.99.

Sime Darby fell 1.06 percent to 8.42 ringgit, Tenaga Nasional dipped 0.82 percent to 12.14, while Public Bank added 0.32 percent to 18.84 ringgit.

-- Taipei fell 0.22 percent, or 19.01 points, to 8,563.48.

Taiwan Semiconductor Manufacturing Co. closed 1.12 percent higher at Tw$135.5 while Hon Hai Precision added 1.67 percent to Tw$91.5.

-- Singapore closed 0.09 percent, or 2.91 points, higher at 3,284.00.

Oil-rig maker Keppel Corp fell 1.38 percent to Sg$7.84 and Singapore Airlines rose 0.53 percent to Sg$11.42 ahead of the release of its first quarter earnings report.

-- Wellington shed 0.38 percent, or 22.39 points, to end at 5,870.77.

Air New Zealand was up 1.34 percent at NZ$2.65 and Spark lifted 1.22 percent to NZ$2.90.

-- Manila was flat, edging up 3.80 points to 7,482.83.

Philippine Long Distance Telephone was down 0.42 percent at 2,876 pesos, Metrobank gained 0.34 percent to 88.80 pesos and BDO Unibank added 0.91 percent to 99.50 pesos.

dan/tm