Asia and the Selling Wave

The stock selling wave that started in Asia and then became a tsunami of panic by the time it hit Wall Street is back in Asia (where it is Wednesday morning).

XX Here is the news so far. In China:

China stocks open down but quickly recover

SHANGHAI (Reuters) - China's main stock index opened lower on Wednesday but recovered quickly and moved into positive territory as heavily weighted financial blue chips climbed.

The benchmark Shanghai Composite Index <.SSEC> opened down 1.34 percent, but after five minutes stood 1.18 percent higher at 2,804.454 points.

XX In Hong Kong, at first the news was bad ...

Hong Kong shares open sharply lower on global market slump after China selloff

HONG KONG (XFN-ASIA) - Share prices opened sharply lower following steep falls on global markets after investors were spooked by a nearly 9 pct drop on the Shanghai bourse yesterday, dealers said.

XX But then it got better ...

HK shares trim losses as bargain hunting emerges

HONG KONG, Feb 28 (Reuters) - Hong Kong stocks pared earlier losses in Wednesday morning trade after China's main stock index moved into positive territory and investors saw value in battered shares such as China Mobile.

"This is a good correction, a good opportunity to buy," said Tat Auyeung, fund manager at APEX Capital Management who manages a number of Asia ex-Japan funds worth about $500 million.

XX In Japan, the market took a Godzilla-sized hit in the morning ...

Japan stocks tumble almost 4 pct in global sell-off

TOKYO, Feb 28 (Reuters) - Tokyo's broad TOPIX index tumbled nearly 4 percent on Wednesday morning, on track for its biggest loss in almost three years, as investors rushed to unload everything from Sony Corp. to Softbank Corp. as part of a sell-off in markets around the world.

XX In Australia, stocks sold off and then bounced a bit. Authorities tried to calm nervous investors ...

Australia well placed to weather market volatility –Treasurer

SYDNEY (XFN-ASIA) - Federal government treasurer Peter Costello said Australia is well placed to weather market volatility, have a strong economy and as well as strong corporate earnings.

Costello, who oversees the government's management of the economy, said market volatility illustrates the importance of sound economic fundamentals.

XX And Aussie metals stocks are showing particular strength...

Local metal stocks show some resilience

METALS stocks are holding up well in a market that is taking a 195 point hit in early trade after a horror night on Wall Street.

While US stocks exposed to the resources sector - steelmakers and miners - took big hits in New York after the Shanghai Stock Exchange fell 9 per cent, the same trend is less pronounced here.

XX All in all, not so bad. Let's see how markets in Asia end the day.

UPDATE: You can read a great story on the Asian stock sell-off by pointing your browser at: From Shanghai, tremors heard around the world.
I find it interesting that in China, people refer to the stock market as "dubo jin" or the slot machine.

Further update: This bounce doesn't sound convincing. The headline says China A-shares end morning slightly higher on technical rebound. We'll need more than a technical rebound to end this route.

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