BEIJING: Chinese stocks fell for a third day and other Asian markets were mixed Wednesday as investors looked ahead to the U.S. Federal Reserve’s policy update.
The Shanghai Composite Index shed 2.4 percent to 4,769.73 and Tokyo’s Nikkei 225 was off 0.3 percent at 20,190.78. Taiwan, Manila and New Zealand also declined. Sydney’s S&P/ASX 200 gained 1.3 percent to 5,607.10 and Singapore and Jakarta also rose. Hong Kong’s Hang Seng was flat at 26,579.06 and Seoul’s Kospi was unchanged at 2,027.96.
The market benchmark has slid this week after gaining more than 50 percent this year, making it the world’s best performer. Investors are bracing for volatility following government steps to tighten regulation and rein in margin lending to finance stock purchases.
Chinese shares “have some bottom-up concerns,” said strategist Evan Lucas of IG Markets in a report. “Valuations are exorbitant. Trade velocity is at record highs Finally, it has the world’s highest level of margining and fundamentals are at breakneck levels.”
