China’s stocks head for topsy-turvy day: Hang Seng gains while mainland markets plunge

China’s stock markets are trading mixed, heading for another topsy-turvy day as traders switched positions between taking their profits and diving into bargains, raising doubts about the sustainability of the world’s biggest rally.

Hong Kong’s benchmark Hang Seng Index rose 1.7 per cent when it opened, recovering some of yesterday’s 9.4-per cent loss. The gauge was trading 2.2 per cent higher at 21,389.65 at 9.48am local time.

The CSI 300 Index, which tracks the biggest stocks on the Shanghai and Shenzhen exchanges, fell 2 per cent when trading began, surrendering some of yesterday’s 5.9-per cent gain. It was the first decline for mainland China’s stocks in 11 days, as traders took their profits from the market’s frenzy.

The Hang Seng Tech Index gained 4.3 per cent. The Shanghai Composite Index retreated 1.9 per cent and the CSI 300 Index dropped 2 per cent.

Other major Asian markets were mixed. Japan’s Nikkei 225 slipped 0.9 per cent and South Korea’s Kospi retreated 0.6 per cent, while Australia’s S&P/ASX 200 added 0.4 per cent.

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