Asian Stock Tsunami Update

When I went to bed around midnight last night, Asian stocks looked pretty bleak. But we've seen some pretty good bounces this morning. We aren't out of the woods yet, but here are some stories ...

Shanghai Shares Rebound Nearly 4 Percent; China Says No Plans to Tax Capital Gains

SHANGHAI, China (AP) -- Chinese stocks recovered Wednesday following their worst plunge in a decade as regulators shifted into damage control, denying rumors of plans for a 20 percent capital gains tax on stock investments.

The Shanghai Composite Index gained 3.9 percent to 2,881.07 after opening 1.3 percent lower. On Tuesday, it tumbled 8.8 percent, its largest decline since Feb. 18, 1997.

XX However, not all the news is good, as the story goes on to say ...

Markets across Asia were still rattled, with many falling for a second day. Japan's benchmark Nikkei Index sank 2.85 percent, while stocks in the Philippines tumbled 7.9 percent. Malaysian shares fell 3.3 percent, while Hong Kong's market fell 2.5 percent.

XX And here is a story on how China is NOT planning a big capital gains tax -- apparently, that was fuel for the spark of yesterday's selling.

Report: China not planning big capital gains tax

XX Now, let's look at some charts of Asian stocks of interest ...

Again, this doesn't mean we're out of the woods. But commodity-heavy Australia seems to be bearing up better than financials-focused Japan. Stay tuned for more updates. Good luck, and good trades.

Check out my new gold and energy blog at MoneyAndMarkets.com