Chinese Stock Markets Tumble Amid Falling Oil Prices and Political Uncertainty

Chinese stock markets declined on Wednesday, led by energy companies' losses following a drop in oil prices. Political developments in the U.S. impacted market sentiment, leading to a mixed performance among different sectors. The Shanghai Composite index and blue-chip CSI300 both suffered, while electric vehicle stocks saw gains.

Chinese stock markets saw a decline on Wednesday as shares in energy companies led the losses, tracking a drop in oil prices. The Shanghai Composite index dropped 0.92% to 2,718.85 points by midday.

The blue-chip CSI300 index fell 0.43%, with its financial sector sub-index down by 1.12% and the oil and gas industry sub-index shedding 2.6%, although the electric vehicle index bucked the trend with a 2.7% rise. Betting markets adjusted odds in favor of Democrat Kamala Harris winning the U.S. presidency, leading traders to sell dollars and buy yuan, slightly reducing the risk of punitive tariffs on Chinese goods.

Elsewhere, MSCI's Asia ex-Japan stock index weakened by 0.29% and Japan's Nikkei index declined 1.56%. The yuan was 0.1% firmer at 7.1131 per U.S. dollar. Oil prices dropped below $70 a barrel, and Chinese H-shares listed in Hong Kong fell 1.46% to 5,938.54. The largest percentage gainer in the Shanghai Composite index was Jinzhou Yongshan Lithium Co Ltd, which rose 10% on reports of battery-maker CATL suspending some mining activities.

(With inputs from agencies.)