Most Asian stock markets ended lower Wednesday after the surprise interest-rate increase by China late Tuesday sparked a selloff in global equity and commodity markets.
But Chinese shares ended a bit higher, rebounding from a drop in the opening minutes of trade, on hopes the mainland economy will continue to grow at a fast clip and that fund inflows will support stocks.
Meanwhile, in Europe, stocks edged higher, lifted by a solid performance in the U.S. and a rebound in the resources sector.
In SHANGHAI , stocks went on a roller-coaster ride after the central bank raised its benchmark deposit and lending rates by a quarter percentage point, its first increase since December 2007. The Shanghai Composite Index ended up 0.1% at 3003.95.
Airline, automobile and consumer stocks advanced, reflecting confidence in the nation's economic growth, and offsetting sharp losses in property and metals stocks.
Air China /zigman2/quotes/203341301/delayed CN:601111 +1.69% rose 1.8%, SAIC Motor /zigman2/quotes/201442870/delayed CN:600104 -3.80% added 2.8% and Tsingtao Brewery /zigman2/quotes/205439669/delayed CN:600600 -0.79% gained 1.2% in Shanghai. Among losers, Poly Real Estate Group /zigman2/quotes/201864015/delayed CN:600048 +0.67% tumbled 7.8% and Aluminum Corp. of China skidded 3.8%.
In HONG KONG , mainland property developers fell, with China Overseas Land & Investment down 3% and China Resources Land off 4.1%. The Hang Seng Index declined 0.9% to 23556.50.
In TOKYO , the Nikkei Stock Average slid 1.7% to 9381.60 as investors digested the implications of China's move. Among those with exposure to China, Komatsu and Toyota Motor /zigman2/quotes/200537742/composite TM -2.70% fell 1.3% and Canon /zigman2/quotes/210242912/composite CAJ -4.90% slid 2%.
Resource stocks were hit across the region on China's move. BHP Billiton /zigman2/quotes/208108397/composite BHP -2.23% fell 0.7% and Rio Tinto /zigman2/quotes/202627887/composite RIO -3.05% dropped 1.7% in Sydney, Inpex fell 3.4% and commodities trading house Marubeni /zigman2/quotes/202870197/delayed JP:8002 -3.70% slipped 3% in Tokyo, and Sterlite Industries declined 3.5% in Mumbai. The fall in BHP came even as the miner reported an increase in its iron-ore production in the July-September period.
The slide in gold prices hit related stocks. Newcrest Mining /zigman2/quotes/203840223/delayed AU:NCM +2.78% fell 1.8% in Sydney, Sumitomo Metal Mining /zigman2/quotes/205273301/delayed JP:5713 -1.35% slid 3.6% in Tokyo, and Zijin Mining Group /zigman2/quotes/203833875/delayed CN:601899 +1.08% dropped 2.4% in Hong Kong.
In Europe, the Stoxx Europe 600 index rose 0.3% to 266.13.
In LONDON , the FTSE 100 index added 0.4% to 5728.93. Resource shares recovered some of Tuesday's losses, with BHP Billiton gaining 2.5% after the company posted a 6% rise in iron output in the first quarter of the fiscal year.
In AMSTERDAM , TomTom, which makes equipment used in satellite-navigation systems, reversed early losses to gain 2.8%. The company said profit in the latest quarter dropped by more than a third as margin narrowed, hurt by the weak dollar. TomTom said it still expects to achieve its financial targets for the year.