Chinese stock index sinks 7.6 percent, Japan also down

BEIJING (AP) – China’s stock market index tumbled for a fourth day, falling 7.6 percent Tuesday to an eight-month low and Japanese stocks fell. But other Asian rebounded after a day of heavy global losses, and European markets also bounced back in early trading.

The mixed picture comes a day after a global sell-off and tumultuous day on Wall Street, where the Dow Jones closed down 3.6 percent Monday. Markets in Hong Kong, South Korea, Australia and Singapore posted modest recoveries Tuesday after being hit hard a day earlier.

Analysts said it was unclear whether this was a sign the worst was over or a reprieve in a longer-term bear market.

The Shanghai Composite Index lost 7.6 percent to 2,964.97 points, adding to Monday’s 8.5 percent loss and taking the benchmark to its lowest level since Dec. 15. Tokyo’s Nikkei 225 average was in positive territory for parts of the day, but ended up closing down 4 percent at 17,806.70. It had fallen 4.6 percent Monday.

In early trading in Europe, France’s CAC-40 advanced 1.5 percent to 4,449.93, rebounding from the previous session’s 5.4 percent loss. Germany’s DAX gained 1.4 percent to 9,787.97 after dropping 4.7 percent Monday.

Monday’s global sell-off was triggered by the sharp drop in Chinese stocks, but experts said there was little change in economic fundamentals to justify such a massive global slide.

“There was no clear catalyst for the global stock meltdown. The lack of clarity makes it difficult to assess what is needed to stem the rout,” said Bernard Aw of IG Markets in a report.

“A coordinated policy response is critical, and much of this needs to come from Asian economies,” Aw said. “A spate of better economic news may help to allay concerns that global growth is not deteriorating. Certainly, improvements in the Chinese economy will be welcomed.”

In Sydney, the S&P ASX 200 gained 2.7 percent to 5,137.30 and Seoul’s Kospi advanced 0.9 percent, rebounding from Monday’s 3 percent fall.

In currency markets, the dollar declined to 119.4810 yen from Monday’s 118.6930 yen. The euro edged down to $1.1544 from the previous session’s $1.1591.

Oil rebounded from Monday’s steep declines.

Benchmark U.S. crude gained 59 cents to $38.83 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $2.21 on Monday to close at $38.42.

Brent crude, used to price international oils, advanced $1.02 to $43.70 per barrel in London. It fell $2.77 the previous day to close at $42.69.