China’s stocks traded near their lowest since February before bouncing back, showing the growing uncertainty over whether the country’s $1.2 trillion rout is over.
The Shanghai Composite Index slipped 0.4% at 11:10 a.m. local time, after earlier losing as much as 1.5%. The gauge is now among the world’s worst performing national benchmarks this quarter, after beating every other market earlier in the year. Volume on the index was about 20% lower than the 30-day average at this time of day, a sign that traders are reluctant to jump back into the market, data compiled by Bloomberg showed.
Optimism that China would soon rescue its tumbling markets is fading after stocks sank for a fourth week. Investors Monday reacted to news that some top U.S. companies have stopped supplying critical software and components to China’s Huawei Technologies Co., a sign that relations with the U.S. aren’t improving. The country’s central bank warned late Friday that the escalating trade war could destabilize the global economy.