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World markets stage mixed comeback

World markets stage mixed comeback

Battered world financial markets attempted to reclaim lost territory Wednesday with mixed success. In Asia, Tokyo’s benchmark Nikkei 225 index gained 570.13 points, or 3.20%, closing at 18,376.83. The broader Topix index finished with a 3.23% gain. While stocks in China ended the volatile trading session lower, the losses were not as dramatic as seen in recent days.Better Expected Trade Data Reported By China

The Shanghai composite index — now down by over 40% since mid-June — climbed nearly 3% in afternoon trading before closing down 1.3% at 2, 927.29. In Europe, most of the major regional benchmarks were down. Germany’s DAX index was 0.5% lower and France’s CAC 40 index dropped 0.4%. U.S. stocks rallied at the open.

Chinese state media reported Wednesday that employees of Citic Securities Ltd. — one of China’s biggest securities firms — and one current and one former employee of its market regulator are under investigation on suspicion of illegal stock trading. Three other brokerages announced they are under investigation for possible violations of rules on confirming the identities of customers. Chinese regulators on Tuesday slashed interest rates and eased banking requirements, helping to fuel enthusiasm or at least ease anxieties.

“A certain calm has descended on Asian markets today, allowing traders to catch a much-needed breath,” Chris Weston, chief market strategist at IG, said in a market note. But he added, “It still feels as though volatility can break out at any time.” The Nikkei index had lost 2,747.77 points — or 13.37% – over the previous five days. The Dow Jones industrial average — now in a brutal, six-day losing streak — ended down 205 points Tuesday, or 1.3%, to 15,666.44. The Standard & Poor’s 500 index lost 1.4. The tech-stocks-heavy Nasdaq closed Tuesday 0.4% lower.