China stock market recovered some ground on September 2, with the main share index, the Shanghai Composite, recovering from early losses.
The SSE Composite index came back from a 4% fall to close 0.2% down at 3,160 points.
Hong Kong’s Hang Seng index closed 1.2% down at 20,934.
On September 1, data suggesting China’s manufacturing sector was shrinking at its fastest pace in three years ignited a global market sell-off, resulting in US stocks closing down nearly 3%.
Chinese markets will be closed on September 3 and 4 for a holiday to commemorate the end of World War Two.
“But investors have lost confidence… the correction isn’t over yet,” he said.
Mainland Chinese stocks have lost nearly 40% of their value since June, despite attempts by the government and regulators to prop up the market.
Meanwhile, data showing US factory activity fell to a more than two-year low in August added to the already grim sentiment among investors.
The price of US crude oil also fell sharply – down 8% in New York overnight.
Japan’s benchmark Nikkei 225 index closed up 0.4% to 18,095.40 after leading the region’s losses in the previous session, down nearly 4%.
Australian shares closed up despite economic growth figures for Q2 2015 coming in below expectations.
The economy expanded 0.2% from the previous quarter and was up 2% compared with the same period last year.
Economists were expecting quarterly growth of 0.4% while the annual rate was forecast to be up 2.2%.
The S&P/ASX 200 was up 0.1% to 5,101.50 points – reversing earlier losses.
In South Korea, shares closed up despite government data showing that exports fell 4.3% in July, while imports rose 0.7%.
That led the current account surplus to fall to $9.5 billion in seasonally adjusted terms from a record high of $10.7 billion in June.
The benchmark Kospi index was higher by 0.05% to 1,915.22.