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China stocks seesaw, investors jittery after big tumble

Chinese stocks seesaw as investors remain jittery after tumble; other Asian indexes gain

China stocks seesaw, investors jittery after big tumble

HONG KONG (AP) -- Chinese stocks seesawed on Friday as investors remained jittery a day after a sharp sell-off. Other major Asian benchmarks climbed.

KEEPING SCORE: The Shanghai Composite Index in mainland China declined 0.8 percent to 4,585.35 as it swung between gains and losses a day after tumbling 6.5 percent. Japan's Nikkei 225 edged up 0.1 percent to 20,563.18 and South Korea's Kospi added 0.2 percent to 2,114.80. Hong Kong's Hang Seng was little changed at 27,448.89 and Australia's S&P/ASX 200 rose 1.2 percent to 5,780.50.

CHINA GYRATIONS: The Shanghai stock market is increasingly volatile after soaring more than 120 percent in the past year. Among the reasons cited by analysts and state media for Thursday's sell-off were stricter margin lending requirements by brokers; a Chinese sovereign wealth fund dumping shares in two state banks; the central bank draining liquidity from the market; and a wave of initial share offerings expected next week that will compete for Chinese investors' money.

ANALYST VIEW: The China "selling may just continue for a few days, as the scramble for the exit door intensifies," Nicholas Teo of CMC Markets in Singapore said in a commentary. He said brokers are clamping down on margin lending and the market is facing a liquidity drain due to a heavy calendar on IPOs next week.

WALL STREET: Major U.S. stock benchmarks fell slightly after the sell-off in Shanghai and a looming debt payment deadline for cash-starved Greece. The Dow Jones industrial average slipped 0.2 percent to 18,126.12. The Standard & Poor's 500 edged down 0.1 percent to 2,120.79. The Nasdaq composite lost 0.2 percent to 5,097.98.

ENERGY: Benchmark crude rose as U.S. supplies declined more than expected. The futures contract was up 52 cents to $58.20 a barrel in electronic trading on the New York Mercantile Exchange. It rose 17 cents to settle at $57.68 a barrel in Nymex floor trading on Thursday. Brent crude, used to price oil sold internationally, rose 42 cents to $62.99 in London.

CURRENCIES: The dollar slipped to 123.95 yen from 123.75 yen in the previous global trading session. The euro slipped to $1.0941 from $1.0969.

Updated : 2021-09-27 00:54 GMT+08:00