Most Asian stock markets steadied on Wednesday after sliding to 3-year lows but a weak outlook for commodities and persistent concerns about China’s economy discouraged most buyers.
MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade after plumbing its lowest since June 2012 on Tuesday on fears that China’s slowdown would curb its huge appetite for commodities and resources.
The index was on track for a 19 percent loss for the quarter, its worst loss in four years.
“Global equities are closing in on their worst quarter since 2011, with a number of factors fuelling fears in an already jittery market, including weak global growth, driven by deceleration in emerging markets, particularly China,” strategists at Barclays wrote.
“We recommend overweight positions in Japanese and European equities.”
South Korea’s Kospi dropped 1 percent while Australian shares gained 0.3 percent.
Japan’s Nikkei brushed aside an unexpected drop in the country’s industrial output and gained 1.6 percent. It was still poised for a 14 percent drop over the quarter, its deepest since 2010.