Asian shares weighed by China fears, oil price slump
"Movement in Chinese shares will continue to have an effect on other markets."
TOKYO (AFP) - Chinese shares briefly fell again Tuesday morning on renewed fears about the world s number two economy -- a key driver of global growth -- as the gloomy sentiment dented most other regional markets.
Another slump in oil prices also weighed on sentiment with trading volumes low as markets wind down in the last week of the year.
Analysts warned that slumping crude prices, which had enjoyed a brief push upward last week, would drag on Asia-Pacific markets.
"Whenever the weakness in oil regains market attention, it weighs on sentiment," Toshihiko Matsuno, chief strategist at SMBC Friend Securities in Tokyo, told Bloomberg News.
"Movement in Chinese shares will continue to have an effect on other markets."
At the start, Chinese shares extended sharp falls from the previous day after disappointing industrial profit data hinted at weakness in the powerhouse economy.
Adding to the gloomy picture were concerns that a looming end to a six-month Chinese share sale ban could spark a sell-off on mainland markets.
Despite the weak start, Chinese bourses largely recovered in later trading with Shanghai adding 0.14 percent and Shenzhen off 0.01 percent.
Hong Kong s Hang Seng index was up 0.31 percent Tuesday morning.
"The pre-Christmas general recovery in global risk sentiment is showing some signs of fragility as we approach the year end," Australia National Bank credit analyst Simon Fletcher said in a commentary.
In Tokyo, the Nikkei 225 ended the morning session flat, while Seoul edged down 0.07 percent and Taiwan fell 0.74 percent.
Sydney gained 0.74 percent and Singapore was up 0.21 percent.
