Chinese stocks gyrated wildly on Tuesday, with main indexes tumbling 5 percent at one point as weak manufacturing data laid bare the daunting challenge faced by Beijing as it races to revive a stumbling economy. Hong Kong stocks also fell, weighed down by weak retail sales data, and sluggish performance on Wall Street.
By Paul Carsten and Nishant Kumar BEIJING/LONDON (Reuters) - The head of hedge fund manager Man Group Plc's China business has been taken into custody to help authorities in a probe into recent market volatility, Bloomberg reported on Monday, while separately a local financial reporter confessed on national TV to having spread false information that caused "panic and disorder". Both are likely to jangle nerves in the financial industry as regulators try to find out who they think was behind China's wild stock market rollercoaster ride in the past three months. Authorities have been investigating possible market manipulation following wild swings in the stock markets, which have plunged around 40 percent since mid-June on concerns of a slowing economy and a surprise devaluation of the yuan currency earlier this month.
By Manolo Serapio Jr MANILA (Reuters) - Gold edged higher on Tuesday as equities faltered on mounting expectations that the U.S. Federal Reserve will likely go ahead with an interest rate increase this month. Fed Vice Chairman Stanley Fischer said on Saturday that U.S. inflation will likely rebound as pressure from the dollar fades, allowing the U.S. central bank to raise interest rates gradually. Fischer's comment sent Wall Street lower overnight and U.S. stock futures stretched losses on Tuesday, with Asian shares also falling, led by China.