Beijing, China (BBN)-Mainland Chinese shares headed higher on Wednesday, recovering some of the steep losses made earlier this week on concerns about the economy.
The Shanghai Composite index was up 1.0 per cent to 3,321.82 as measures from regulators to support the stock market started to have an impact, reports BBC.
Local reports said the securities regulator would keep in effect its ban on share sales by major shareholders until new rules are released.
The ban was set to expire on Friday.
It was put in place six months ago at the height of the mainland stock market sell-off over the summer and locked up an estimated 1.24tn yuan ($190bn) worth of shares.
Monday’s 7 per cent plunge in the Shanghai market, which led to the suspension of trading for the first time, triggered a global equities rout.
But a sense of calm has now moved over financial markets now, said Chris Weston, chief market strategist at trading firm IG in a note.
“While we haven’t seen a snap back rally, the flat moves in US and European markets means we can stop to catch our breath,” he said.
Beijing’s decision on Tuesday to to inject cash into the falling market also helped sooth fears.
Economic data that suggested activity in the country’s services sector expanded at its slowest pace in 17 months in December had little impact on investors’ confidence.
The Caixin/Markit purchasing managers’ index (PMI) fell to 50.2 from 51.2 in November.
A reading above 50 suggests growth in the sector, while one below suggests contraction.
Hong Kong’s Hang Seng index failed to match the positive run from the mainland market and was down 0.3 per cent to 21,130.47.
Japan’s Nikkei 225 index was down 0.5 per cent to 18,283.49, while South Korea’s Kospi index lost 0.2 per cent to 1,925.94 and Australia’s S&P/ASX 200 fell 1.3 per cent to 5,114.70.
Shares of Japanese electronic maker Sharp plunged 2.5 per cent after reports that the troubled firm is expected to book an operating loss of at least 10bn yen ($84m; £57m) for the nine months to December.
Meanwhile, shares of Japanese Apple suppliers also fell after the Nikkei business daily reported that the tech giant is expected to cut iPhone 6 and 6S production by 30 per cent in the first quarter of this year.
Murata Manufacturing was down 2.6 per cent and Japan Display fell 2.4 per cent.