Asian shares attempted a rebound on Wednesday on hopes that Beijing could stem the rout in its markets without damage to the economy, though caution was the watchword ahead of a policy decision from the U.S. Federal Reserve. Australia’s main index .AXJO rose 0.9 percent in early trade, while Japan’s Nikkei .N225 flitted in and out of positive territory. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS firmed 0.5 percent.
Sentiment was soothed a little when Chinese regulators said they were prepared to buy shares to stabilize stocks and the central bank hinted at further easing. Yet investors were understandably wary of a market that, without warning, fell over 8 percent on Monday.
The CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen had ended on Tuesday just 0.2 percent lower, while the Shanghai Composite .SSEC lost 1.7 percent. Both indexes had slumped as much as 5 percent at one point. On Wall Street, the Dow .DJI ended on Tuesday with gains of 1.09 percent, while the S&P 500 .SPX rose 1.24 percent and the Nasdaq .IXIC 0.98 percent.