FT ... the panic outside China has subsided

As ForexLive readers will probably know ... I've a lot regard for the FT and Fast FT in particular

FastFT has just tweeted this:

• A rash conclusion based on two hours of trading: the panic outside China has subsided

The article has more detail. In brief:

• ASX 200 +2.7%
• HK Hang Seng +1.5%
• Japan Topix recovered 4.7% loss in early trading, to rise 0.8%
• Korea Kospi +0.7%

China stock market ... upward moves were based on hopes for monetary easing and a wide rotation in investment circles from property to equity

The collapse of the market doesn't necessarily tell us much about China's demand for Japanese cars, Australian iron ore, Korean semiconductors or Hong Kong's financial services

It may be rash for broad conclusions based on a few hours of trading, but here's one anyway: the panic outside China has subsided, even if within China investors are still in sell mode.

I agree ... it may well be rash, but I reckon that while China markets might well fall further, and there will be more volatility for other markets ahead, the 'contagion' is over.