Most Asia-Pacific stock markets on Tuesday retreated after making solid gains the previous session, with Shanghai spending most of the day below the level marking a halving in value from its peak in October last year before mounting a last-minute recovery.

The Shanghai Composite Index fell as much as 4 per cent to 2,991.104 – its first drop below 3,000 since March 19, 2007 and well below the 3,062 level which marks a 50 per cent decline from the peak of 6,124.044 hit during trading on October 16, 2007. But a late surge in shares of some of China’s biggest companies helped erase losses and the index closed 1 per cent higher at 3,147.79.