Sharp rebound in Shanghai supports Asia markets

Posted by Forexsq 513 days ago (http://www.marketwatch.com)
img A sharp and sudden rebound for Chinese stocks in afternoon trading boosted major Asian markets Wednesday, helping them overcome disappointment after Eurogroup leaders failed to agree on conditions to release the next tranche of financial aid to Greece.

The Shanghai Composite , which dropped below the psychologically-important 2,000-point level earlier in the session, bounced back to finish 1.1% higher at 2,030.32 on a wave of buying in the afternoon session.

“That is a sign that China will not let the A-share market to fall off the cliff,” said Francis Lun, managing director at Lyncean Holdings in Hong Kong. “I think the Chinese government must be watching the market closely... What they can do is to get the Social Security funds to buy shares.”

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