Asian shares reversed early losses to end on a steady note Thursday, as a rebound in battered Chinese markets offered a sense of relief to investors worried about broader implications for the global economy. Commodity prices stabilized after recent plunge and Greece and its creditors appeared moving closer to reaching a new bailout agreement by Sunday, helping to underpin investor sentiment after the previous day's big declines.
Chinese shares led the pace of regional gains as authorities unveiled fresh support measures and official data showed China's consumer inflation ticked slightly higher in June. The benchmark Shanghai Composite index closed up 202.14 points or 5.76 percent at 3,709.33, its largest single-day percentage gain since March 2009, after dropping more than 3 percent at the opening bell.
Hong Kong's Hang Seng index closed up 876.23 points or 3.73 percent at 24,392.79 after slumping nearly 6 percent the previous day.
China's securities regulator banned senior management and investors who own stakes in businesses exceeding 5 percent from selling their shares for next six months in a bid to curb crashing prices on its stock markets.
China's central bank said it would provide sufficient liquidity to China Securities Finance Corp, the state-backed margin finance company, via various channels. The China Banking Regulatory Commission said it would encourage banks to support companies' share buybacks by offering them collateralized loans.
In economic news, China's consumer inflation edged up slightly in June, while producer prices remained entrenched in deflation for a 40th consecutive month, reflecting continuing slack in the world's second-largest economy. The consumer price index rose to 1.4 percent year-over-year, up from 1.2 percent in May and exceeding forecasts for a 1.3 percent rise. Producer prices contracted 4.8 percent from a year earlier, versus forecasts for a fall of 4.6 percent, which would have been unchanged.
Japanese shares rebounded from three-month lows, tracking a surge in Shanghai stocks. The benchmark Nikkei average plunged more than 3 percent in early trade before reversing direction to end the session up 117.86 points or 0.60 percent at 19,855.50. The broader Topix index of all first-section issues closed 0.16 percent higher at 1,579.89. Fanuc, Panasonic, Sony Corp and Sharp Corp rose 1-3 percent as the safe-haven yen weakened against the dollar for the first time in six sessions.
Uniqlo chain operator Fast Retailing climbed over 4 percent before unveiling its third-quarter financial results later in the day. Honda Motor ended marginally lower after announcing it would recall another 4.5 million vehicles globally to replace air bags manufactured by Takata Corp. Toshiba fell 2.1 percent on a Nikkei report the company is considering selling part of its stake in U.S. nuclear power unit Westinghouse Electric and other assets.
On the economic front, Japan's core machinery orders unexpectedly rose 0.6 percent in May from the previous month, the Cabinet Office said, providing fresh evidence of a steady pick-up in capital spending by domestic firms. The headline figure easily beat forecasts for a decline of 0.5 percent following a 3.8 percent increase in April. On an annual basis, core machine orders added 19.3 percent, topping forecasts for a 16.7 percent gain.
Australian shares rebounded from early losses after employment figures beat expectations for a second month. Chinese stocks rebounded sharply and iron ore futures ticked higher, further aiding sentiment. The benchmark S&P/ASX 200 index closed up 1.5 points or 0.03 percent at 5,471.10 after falling as low as 5,383.7 in early deals.
BHP Billiton and Rio Tinto both rose about 2 percent as investors rushed to cover short positions. Gold miner Newcrest Mining added 2.5 percent even as gold hovered near its lowest level since March. Energy stocks ended mixed, with Santos rising 0.4 percent, while Woodside Petroleum and Oil Search eased about 0.3 percent each.
Shares of Caltex Australia dropped 1.4 percent despite the oil refiner and distributor reporting a 45 percent surge in first-half net profit, aided by strong margins in refining and increasing sales of premium petrol and diesel. The big four banks closed down between 0.2 percent and 0.8 percent. Qantas Airways gained 1.5 percent on receiving approval from the competition watchdog, ACCC, for expanding its alliance with American Airlines in an interim deal.
Australia's jobless rate inched up to 6.0 percent in June from a revised 5.9 percent in May, Australian Bureau of Statistics Labor Force figures showed, coming in better that the 6.1 percent expected by economists. The number of people employed rose by 7300 to 11.77 million - topping forecasts for a flat reading.
Seoul shares rebounded from a four-month low after Chinese policymakers announced new support measures to stabilize the country's slumping stock market. The benchmark Kospi average erased early losses to end the session up 11.60 points or 0.58 percent at 2,027.81. While Samsung Electronics and LG Display both climbed about 2 percent, Korean Airlines slumped 5.5 percent after failing to offload shares via a block deal.
Meanwhile, in a widely expected decision, the Bank of Korea today held its key interest rate steady at a record low 1.50 percent, opting to monitor the economic fallout from an outbreak of the MERS virus and the impact of fiscal and monetary stimulus packages on the economy. The central bank cut its 2015 economic growth forecast for the third time this year and also lowered its annual inflation forecast for this year.
New Zealand shares fell as investors continued to fret over Greece's debt woes and the risk of China's stock market meltdown spreading to the broader economy. The benchmark NZX-50 index closed down 30.26 points or 0.52 percent at 5,737.44 after falling as much as 1.4 percent early in the day. Outdoor goods retailer Kathmandu Holdings led the decliners, falling 4.3 percent to $1.56, while Sky City Entertainment, Restaurant Brands and Warehouse Group lost 2-3 percent.
In economic releases, the value of overall credit card transactions in New Zealand jumped a seasonally adjusted 0.6 percent in June from the previous month, Statistics New Zealand data showed, coming in line with expectations after a 1.4 percent jump in May.
Elsewhere, Indian shares were marginally lower, Indonesia's Jakarta Composite index was down 0.8 percent, Singapore's Straits Times index was moving down 0.3 percent and the Taiwan Weighted average dropped 0.7 percent, while Malaysia's KLSE Composite index was up 0.3 percent.
U.S stocks fell sharply overnight amid growing concerns that trouble in China's markets could spread to its economy over the long term. The Dow plunged 1.5 percent to close at a five-month low, while the S&P 500 and the tech-heavy Nasdaq plummeted 1.7 percent and 1.8 percent, respectively to close at their worst levels since March and April. The NYSE halted trading for more than three hours due to technical problems.
The minutes from the latest FOMC meeting indicated that policymakers were concerned about weak spots in the economy and foreign risks, and were willing to wait another meeting or two for additional data before raising interest rates.
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Market Analysis
May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.