HONG KONG (AP) — Asian stocks stabilized Tuesday as selling pressure eased after several days of steep losses and investors shifted to a holding pattern ahead of a Fed decision on scaling back stimulus.
Investors worried about slowing growth in China, the world's second biggest economy, found some solace in reports that a high-profile trust company in China cut a last minute deal to avoid a default.
Some 700 clients who bought into a 3 billion yuan ($500 million) product from China Credit Trust agreed on Monday to a restructuring so that they could get their investment back, Xinhua reported, avoiding the first of what was feared would be a cascade of defaults in the country's shadow banking sector.
Investor sentiment has improved though it remains cautious, Cynthia Jane Kalasopatan of Mizuho Bank in Singapore wrote in a market commentary.
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