Indices snap rally, down 2%

China's main stock index dropped 2 percent in shrinking turnover yesterday, erasing early gains and snapping a seven-day rally that faltered below stiff technical resistance, while steel and oil shares weakened.

The Shanghai Composite Index ended at 2291.555 points. Losing Shanghai A shares outnumbered gainers by 729 to 201, while turnover in Shanghai A shares shrank to 131.8 billion yuan from Tuesday's 149.2 billion yuan.

Steel industry leader Baoshan Iron and Steel fell 3.6 percent to 5.62 yuan.