China Stock Market Trades Higher as Rest of Asia Falls

China stock market was the lone winner in Asia on September 21 as the rest of the region headed lower on lingering worries about weaker global growth.

The Shanghai Composite ended up 1.9% to 3,156.54 despite the Federal Reserve’s decision to hold off raising interest rates last week, in part due to a slowing Chinese economy.

Chinese shares in small-cap companies rebounded strongly, making up for recent losses.

Meanwhile Hong Kong’s Hang Seng index closed down 0.8% to 21,756.93 points.

Trading was also lighter than usual with the region’s biggest market, Japan, closed until September 23 for public holidays.

In the meantime, investors are looking ahead to flash manufacturing activity readings from China and the euro zone on Wednesday for an indication on where the global economy is heading.

In Australia, the benchmark S&P/ASX 200 index closed down 2% to 5,066.2 – leading the region’s losses.

South Korea’s Kospi finished down 1.6% to 1,964.68 after hitting a five and a half week high in the previous session.

The benchmark index also ended a four-day winning streak.