YEREVAN, June 26. /ARKA/. Most Asian shares turned around a four-day losing streak and rose on Wednesday as investors took comfort from U.S. data underscoring an American recovery and assurances from China’s central bank that it will offer funds to banks if needed.
But fears of a credit crunch and slower loan growth continued to fuel selling of Chinese banking shares in Shanghai, pulling Japan’s Nikkei .N225 down nearly 1 percent at one point after a solid start. .T
Even as they eased for a fourth day, China’s short-term borrowing rates remained at elevated levels and some traders expected liquidity to remain tight until mid-July.
“Worries over China’s banking system and economy still weigh on the markets,” said Hiroaki Hiwada, a senior strategist at Toyo Securities.
Hong Kong shares .HSI were up 0.9 percent but Shanghai shares .CSI300.SSEC once again turned lower and extended losses to more than 1 percent, after tumbling nearly 7 percent at one point on Tuesday to the lowest since January 2009.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed 1.1 percent after plumbing an 11-month low on Tuesday, with Australia, Taiwan and Southeast Asian bourses firming.
Still, the gauge’s relative strength index (RSI) was a weak 23.7, showing investor confidence in pan-Asian bourses remains badly shaken after a month-long emerging market slide. –0–
