Against the background of continuing decline in China, Asian markets recovered from a three-year lows. The broader index of shares in the Asia-Pacific MSCI rose 1.1 percent after its initial fall to three-year low, restoring about a quarter of the loss on Monday. After an extremely volatile trading Japanese Nikkei ended the day with a decline of 4%. Amid fears of China, the Japanese Finance Minister Taro Aso said on Tuesday he hoped Beijing to take measures to stabilize the economy, and that currently there are no plans for Tokyo announcement of new economic stimulus package.
Stock markets in Europe opened trade with gains after auctions on Monday erased about 450 billion. Euros of the value of the leading markets of the continent. After falling by 5.4% on Monday, the pan-European FTSE Eurofirst 300 began today with a growth of 1.6%. Indexes in London, Paris and Frankfurt also opened with gains on the order of 1.5-1.7%. US futures also signaled probably catching up on 18 of the 78 points that S & P 500 lost Monday.
“Recent turmoil left breathless even the most savvy traders. And probably still has,” said Frederic Neumann, who heads research on Asian economies at HSBC. “The Chinese economy continues to slow, while the US Federal Reserve could still raise interest rates before the end of the year. This opens up new cracks in two main pillars of global growth in recent years – Chinese demand, including raw materials, and easy access to financing, “says the analyst. However, he is not likely to repeat the Asian financial crisis of the late 90s, notes Reuters.