Asian markets endured their third day of falls out of the last four sessions but much of the worst losses were pared after investors took early fright at renewed Korean tensions and eurozone debt woes.
The Shanghai Composite slumped nearly 3 per cent in early trade before ending 1.4 per cent lower at 2,852.92, with the FTSE Asia-Pacific index retreating just 0.3 per cent to 256.66 after initial losses of 1 per cent.
“The tension in the Korean peninsula may fuel investors’ pessimism approaching the year end,” Wu Yang of Guotai Junan Futures Research Institute, told Bloomberg. “The market always gets hit from these kind of shocks.”
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