Asia markets closed mostly higher, with some of the major indexes rebounding Wednesday, in a sign of returning stability even in the face of lingering worries about China and falling commodity prices.
Chinese indexes, however, bucked the trend, falling more than 2 percent in another late session sell-off. That follows a volatile start to the year, in which Chinese stocks plunged, spurring a global market rout.
"This [volatility] is not likely about the Chinese stock market itself, but instead all about one of the drivers of the Chinese stock market - namely the Chinese currency, the renminbi," Bank of America Merrill Lynch said in a note on Tuesday, noting that the currency fell more than 1.5 percent against the dollar last week.
"Within the mix of policy changes in response to what transpired last week - including the removal of circuit breakers in the Chinese equity market, etc. - it is very clear that the PBOC is now working to stabilize the renminbi."