LONDON: Global stock markets faced renewed volatility Wednesday, as further evidence of slowing growth in China caused investors to question the prospects for continued global economic expansion.

Despite revived jitters that sent most markets veering from losses to gains, however, most indices managed to finish up after serious slides on Tuesday.

Following hefty early losses, many Asian bourses reversed direction to close in positive territory — the latest session of roller-coaster activity.

At the end of trade in Europe, London, Paris and Frankfurt similarly finished higher after see-sawing earlier in the day.

Wall Street was mixed in the middle of the trading session, as investors sought to rebound from nearly 3pc losses Tuesday.

Tokyo saw some of the worst turbulence, opening sharply lower only to rally at mid-session and then close down 0.39pc. Shanghai plunged 4.39pc at the beginning of the day, jumped into positivity by lunch but ended 0.20pc lower.

On Tuesday, official data showed Chinese factory activity contracted in August, the latest sign that growth in China — which accounts for more than 13pc of global GDP — is slowing.

The jitters in China were reflected across most of the region. Hong Kong swung in and out of positive territory throughout the day to end with a loss of 1.18pc. Seoul ended 0.05pc higher after starting in the red.

London closed 0.41pc higher, while Paris ended 0.30pc up and Frankfurt finished 0.32pc ahead. All three suffered frenetic sell-offs Tuesday.

Published in Dawn, September 3rd, 2015

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