Asian Markets Decline, US Stocks Slide On Treasury Yields Record

Tokyo: Shares soared Tuesday in Shanghai as Chinese markets reopened after a weeklong holiday but then gave up a chunk of their initial gains as officials in Beijing outlined details of plans to revive the world's second-largest economy. The Shanghai Composite index was up 5.5 per cent at 3,519.88 and in Shenzhen, Japan's smaller market, the main index gained 5.3 per cent. The Shanghai benchmark initially gained 10 per cent but fell back as officials of China's main economic planning agency briefed reporters about a slew of policies announced earlier meant to address key problems such as a property market slump. Hong Kong's Hang Seng sank 5.8 per cent to 21,758.45 as traders sold to lock in profits from recent gains. “China's markets rally has hit a wall, leaving investors deflated. The reopening surge from the week-long holiday barely had time to gather steam before fizzling out, and now the once-thrilled bulls are licking their wounds,” Stephen Innes of SPI Asset Management said in a commentary.

Elsewhere in Asia, markets were mostly lower. Tokyo's Nikkei 225 index lost 1.2 per cent to 38,861.09. as the dollar fell to 147.91 Japanese yen from 148.18 yen. A weaker yen tends to push share prices higher. The Kospi in Seoul declined 0.5 per cent to 2,596.38. Australia's S&P/ASX 200 edged 0.2 per cent to 8,187.10. On Monday, US stocks slid after Treasury yields hit their highest levels since the summer and oil prices continued to climb. The S&P 500 dropped 1 per cent to 5,695.94 and is still close to its all-time high set a week earlier. The Dow Jones Industrial Average fell 0.9 per cent to 41,954.24, coming off its own record. The Nasdaq composite sank 1.2 per cent to 17,923.90.