Morning Markets Wrap: Chinese stocks down amid stimulus worry as dollar makes gains

Market pessimism around Chinese equities ‘probably at a level of extreme,’ investment expert warns

European equity futures advanced while contracts for their US counterparts were flat. Picture: Getty

Chinese stocks declined at close of business local time on Tuesday, a sign that traders are increasingly pricing in the lack of major stimulus from the government amid a slump in the economy.

Markets in the rest of Asia showed more promising results, pacing US gains.

Shares in Hong Kong and mainland China were the worst performers in the region, forcing a volume of Asian shares into a third day of losses.

Investors see no ...