Month: August 2015

Investors to PBoC: Can we have some more?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China stocks seesaw after volatile US session, PBOC easing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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China’s Shanghai Composite index seesawed between gains and losses early Wednesday, mirroring the dramatic US trading session overnight as investors digest news of fresh interest rate cuts aimed at propping up the world’s second largest economy.

The People’s Bank of China (PBOC) fired a double-barreled easing shot late Tuesday, by lowering interest rates and the reserve requirement ratio (RRR) by 25 basis points, on the back of a brutal multi-day sell-off in its domestic equity markets that has sent shockwaves around the world. Prior to the market open, a statement from China’s securities regulator said transaction fees on stock index futures trading will be raised.

Martin Lakos, division director at Macquarie Private Wealth, told CNBC early Wednesday that market volatility in China was likely to continue in the very short term. But he added that Macquarie expected the country to make a U-shaped economic recovery, with more RRR cuts in the fourth-quarter.

“We’re not overly concerned about the pace of growth,” he said.

Overnight, the blue-chip Dow Jones Industrial Average and S&P 500 finished about 1.3 percent lower after rallying near 3 percent earlier, marking their biggest reversal to the downside since October 2008. The S&P 500 remained in correction territory.

The tech-heavy Nasdaq Composite closed down 0.4 percent.

Mainland indices choppy

The benchmark Shanghai index swung between both ends of the flatline at the open and was last seen advancing 1 percent higher at 2,992.4, a whisker below
the critical 3,000 mark.

In the previous session, the bourse nosedived 7.63 percent to settle at an eight-month low of 2,965.1, after having slumped a near 9 percent on Monday.

Among China’s other indexes, the blue-chip CSI300 index elevated 1 percent, but the smaller Shenzhen Composite slipped 0.4 percent. Meanwhile, Hong
Kong’s Hang Seng index opened flat at 21,409.4.

Shares of Chinese brokerages mostly kicked off the day on a positive note, despite reports of investigations by regulatory authorities. For one, Citic Securities
rallied 2.4 percent in Hong Kong, while its Shanghai-listed A-shares tacked on 1 percent.

Nikkei gains 0.7 percent

Japan’s Nikkei 225 index regained its composure to edge up in early trade, after briefly falling into negative turf following a higher open of 0.49 percent.

The swings were an extension of the volatility seen in the previous session; the Tokyo bourse made a U-turn late in Tuesday’s session, ending at a six-month
trough on the back of foreign selling, a stronger yen and worries over China.

Morning laggards included index heavyweights and stocks with significant exposure to China. Fast Retailing plunged 2.6 percent from the get-go, while
SoftBank and Fanuc lost nearly 1 percent each. Construction equipment makers Komatsu and Hitachi Construction Machinery Co. receded 4.8 and 13.9
percent, respectively.

But advances among some beaten-down exporters helped to offset losses. Blue-chip Toyota Motor elevated 1.1, while Nintendo and Suzuki Motor advanced
2.6 and 1.6 percent, respectively.

ASX slips 0.2 percent

Australia’s S&P ASX 200 widened losses to more than 1 percent, losing the positive momentum that lifted the index up 2.7 percent on Tuesday in a stunning
recovery.

A dismal open among banking names weighed on the bourse; Australia and New Zealand Banking and Westpac slumped more than 2 percent each, while
Commonwealth Bank of Australia and National Australia Bank eased 1.5 percent each.

Shares of BHP Billiton gained 0.6 percent despite the mining giant posting a 86 percent fall in profit late Tuesday, missing analyst expectations, in face of a
painful commodity price rout.

Kospi rises 1 percent

South Korea’s Kospi index percent quickly changed course after a negative open, underpinned by hefty buy orders for specific stocks such as Hyundai Motor
and Kia Motors.

Both carmakers climbed nearly 3 percent each at the open, while chipmaker SK Hynix extended gains to surge 2 percent.

However, a 1.2 percent decline in the top weighted stock Samsung Electronics kept the bourse near the flatline.

Rest of Asia lower

Taiwan’s weighted index opened down 1.6 percent, a day after the Taiex index rallied on the back of expectations that the government would soon step in to
shore up market confidence propelled the bourse on Tuesday.

In Southeast Asia, Singapore’s Straits Times index eased 1.2 percent while Malaysia’s FTSE Bursa Malaysia KLCI index dropped 0.5 percent.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Shanghai Comp skids 7.6% to end at 8-month low

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The mayhem in Chinese equity markets showed no signs of abating on Tuesday, with the benchmark Shanghai Composite index accelerating its downfall in the final hour of trading to settle below the key 3,000 mark.

Japan’s Nikkei 225 index was the second-biggest laggard in the region, closing down 4 percent, after turning negative in the afternoon trading session. Earlier in the session, the Tokyo bourse had staged a comeback, alongside most of the other regional stock indices, on the back of bargain hunting in beaten-down stocks and as the Dow Jones Industrial Average futures opened up more than 100 points Monday evening in the US.

Overnight, major US stock indexes slumped almost 4 percent each, after a near 9 percent dive in Chinese equities elevated nervousness about economic activity and demand prospects in the world’s second-biggest economy. The S&P 500 lost 3.94 percent to end formally in correction territory, while the Dow Jones Industrial Average and Nasdaq Composite closed down 3.57 and 3.82 percent, respectively.

China takes another battering

The Shanghai Composite index lurched violently lower in the last hour of trading to eventually close down 7.63 percent at 2,965.1. The finish below the critical 3,000 level marks the index’s lowest level since December 2014.

A substantial number of blue-chip heavyweights fell by the daily maximum allowable of 10 percent on Tuesday, including property developers Poly Real Estate and Shanghai Shimao, as well as brokerage houses such as Citic Securities and Haitong Securities. Securities firms were down by the daily limit for the second consecutive session.

Shares of Shanghai-listed PetroChina, the nation’s biggest company by market value, also slumped 10 percent.

Among China’s other indexes, the blue-chip CSI300 index and the smaller Shenzhen Composite tumbled 7.1 percent each. In Hong Kong, the key Hang Seng index tracked the rapid downturn in its mainland peers to drop 0.5 percent.

Read More: China growth panic is way overdone, experts warn

In the previous session, the Shanghai bourse nosedived nearly 9 percent to chalk up its biggest one-day percentage loss since 2007, leading state media Xinhua News Agency to describe the tumultuous trading session as “Black Monday.”

Analysts attributed the market slump to an erosion of faith and confidence among investors, particularly overseas traders, in Beijing’s ability to prop up share prices. “Chinese regulators have enormous resources and tools to normalize the market [but] investors are very disappointed with the policy responses from China thus far. There is a sense that the government responses have been unorthodox, ineffective and unhealthy for the long term functioning of the Chinese capital markets,” Bruno Del Ama, CEO of Global X Funds, told CNBC’s “The Rundown.”

According to IG’s market strategist Bernard Aw, there is no easy explanation for the meltdown in the mainland markets, which indicates that significant downside risks remain.

“Some blamed it on the yuan devaluation and the Chinese [factory activity] readings. Some said the broader conditions of slowing global growth, falling commodity prices and deflation risks dragged equities down. They could all be right,” Aw wrote in a note issued late Thursday. “But I feel that the lack of clarity on what was the trigger for the stock slump makes it difficult to get a sense of the market – this suggests that the selloff could still have some room to go.”

From a technical perspective, the Shanghai bourse will likely see a temporary support level at 2,800 points, according to independent technical analyst Daryl Guppy. However, in the long run, the key stock index may head down to the next support level of 2,400 points.

Nikkei skids 4%

Japan’s benchmark Nikkei 225 index made a U-turn in the afternoon session and eventually closed at a six-month trough, pressured by selling among European investors, according to Reuters.

Mirroring the reversal in the benchmark index, the Topix index also fell back into the red, ending down 2.7 percent.

Also weighing on the bourse was a swing back to the 119 level in thedollar-yen, sparking risk-off sentiment in export-oriented counters.Toyota Motor, Nissan, Suzuki Motor and Honda closed down between 3.5 and 4.2 percent. Construction equipment maker Komatsu eased 4.4 percent, while electronics makers Panasonic and Sony closed down 4 and 0.3 percent, respectively.

Earlier in the day, Japanese Finance Minister Taro Aso warned market players against pushing up the yen too much further, saying that its spike against the dollar overnight was “rough” and undesirable for the economy.

Weaker oil prices overnight put a chokehold on energy producers.Showa Shell Sekiyu tanked 4.2 percent, while Inpex and JX Holdingslost 2.4 and 3.7 percent, respectively.

ASX jumps 2.7%

A sharp rebound in banking and mining counters lifted Australia’s S&P ASX 200 index out of the red. Earlier in the morning trading session, the Sydney bourse touched a fresh low since July 2013, after widening losses rapidly from 0.4 to 1.4 percent within minutes from the market open.

“It has been a roller-coaster morning on the Australian stock market… however the mood quickly lightened as US stock futures bounced back strongly and Chinese exchanges clawed back some of their initial losses,” analysts from Patersons Securities wrote in a note.

Westpac led the charge in the banking space, up 4.9 percent, possibly on the back of bargain hunting and short-covering. National Australia Bank, Australia and New Zealand Banking and Commonwealth Bank of Australia gained between 3.6 and 4.6 percent.

Oil plays also came off intra-day lows, with Woodside Petroleum and Oil Search closing up 0.8 and 1.6 percent, respectively. Santos inched down 0.4 percent.

Ahead of the release of its full-year results, shares of BHP Billitonerased a lower open to bounce up 2 percent. In other corporate news,Pacific Brands and Amcor surged 15.6 and 4.3 percent, respectively, after upbeat full-year earnings.

Read More: North, South Korea agree to ease recent tensions: Yonhap

Kospi gains 0.9%

South Korea’s Kospi index swerved back into positive territory following choppy trading, while the junior Kosdaq index widened gains to 5.2 percent, as tensions along the Korean peninsula eased.

Hefty buy orders for carmakers Hyundai Motor and Kia Motorsunderpinned the rebound; both stocks soared 3.5 and 4.9 percent, respectively. Chipmaker SK Hynix, which announced plans to spend 31 trillion won ($24.94 billion) to build two new chip plants in South Korea, closed up 7.9 percent.

Refiners also made a comeback on Tuesday, with S-Oil and SK Innovation advancing 3 and 1.5 percent respectively, after falling more than 2 percent at the open.

Read More: 12 records hit in the global market selloff

Rest of Asia

Taiwan’s weighted index closed up 3.6 percent, recouping slightly more than half of Monday’s steep decline which took the Taiex index down to a three-year low at the close.

According to Reuters, expectations that the government would soon step in to shore up market confidence propelled the bourse on Tuesday.

In Southeast Asia, Singapore’s Straits Times index erased a dismal to close 1.51 percent higher. On late Tuesday, a statement from the government said that the country’s parliament has been dissolved, a sign that an announcement on the date of the general election is imminent.

Indonesia’s Jakarta Composite closed up 1.56 percent, breaking a five-day losing streak, while Malaysia’s FTSE Bursa Malaysia KLCI index managed to close 2.08 percent higher, after seeing near 2 percent losses earlier in the session. Thailand’s benchmark SET index finished the day 1.75 percent higher.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares turn mixed, but Shanghai lags

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Share markets in China opened down more than 6 percent early Tuesday, while the rest of Asia turned mixed as investors digested news of a rebound in the Dow Jones Industrial Average futures, whichopened up more than 100 points Monday evening in the US.

Futures for both the S&P 500 and the Nasdaq 100 advanced as well.

However, it was a grim picture overnight, with major US stock indexes slumping almost 4 percent each. The S&P 500 lost 3.94 percent to end formally in correction territory, while the Dow Jones Industrial Average and Nasdaq Composite closed down 3.57 and 3.82 percent, respectively.

Meanwhile, the week-long slump in crude oil gathered pace on Monday, with prices tumbling more than 5 percent to fresh six-and-a-half-year lows.

Benchmark copper on the London Metal Exchange also fell nearly 4 percent to USD 4,855 a tonne overnight, marking a six-year low, after a near 9 percent dive in Chinese equities on Monday elevated nervousness about economic activity and demand prospects in the world’s second-biggest economy.

Mainland indices down

China’s Shanghai Composite index opened down 6.2 percent at 3,039.2, a day after posting its biggest one-day percentage loss since 2007. According to Reuters, the benchmark index crashed to its lowest level since December 2014.
Among China’s other indexes, the blue-chip CSI300 index and the smaller

Shenzhen Composite opened down 6.3 and 6.4 percent, respectively.

In the previous session, the Shanghai bourse nosedived nearly 9 percent, giving up all its gains for the year. Analysts pinpointed the slump at an erosion of faith and confidence among investors, particularly overseas traders.

“Chinese regulators have enormous resources and tools to normalize the market [but] investors are very disappointed with the policy responses from China thus far. There is a sense that the government responses have been unorthodox, ineffective and unhealthy for the long term functioning of the Chinese capital markets,” Bruno Del Ama, CEO of Global X Funds, told CNBC’s “The Rundown.”

According to IG’s market strategist Bernard Aw, there is no easy explanation for the meltdown in the mainland markets, which indicates that significant downside risks remain.

“Some blamed it on the yuan devaluation and the Chinese [factory activity] readings. Some said the broader conditions of slowing global growth, falling commodity prices and deflation risks dragged equities down. They could all be right,” Aw wrote in a note issued late Thursday.

“But I feel that the lack of clarity on what was the trigger for the stock slump makes it difficult to get a sense of the market – this suggests that the selloff could still have some room to go,” he added.

In Hong Kong, the key Hang Seng index recouped losses to bounce up 1.6 percent.

Read More: 12 records hit in the global market selloff

Nikkei skids 1.4%

Japan’s Nikkei 225 remained near a six-month trough, despite trimming losses modestly, as the yen lingered at a seven-month high against the U.S. dollar. The Topix index also dropped 1.5 percent.

Exporters and index heavyweights are to blame for the grim trading figures. Automakers such as Toyota Motor, Nissan, Suzuki Motor andHonda fell more than 2 percent each. Construction equipment makerKomatsu eased 3.1 percent, but electronics maker Sony rebounded 4.8 percent.

SoftBank led losses among the heavyweight components, down 2 percent.
Meanwhile, falling oil prices overnight put a chokehold on energy producers. Inpex tanked 3.8 percent, while JX Holdings and Showa Shell Sekiyu retreated more than 3 percent each.

ASX gains 0.9%

Australia’s S&P ASX 200 index cut losses to rise an hour after the market open. Earlier on, the Sydney bourse touched a fresh low since July 2013 after widening losses rapidly from 0.4 to 1.4 percent within minutes.

Banking shares staged a comeback, likely on the back of bargain hunting and short-covering. Westpac and National Australia Bankbounced up more than 3 percent each, while Australia and New Zealand Banking and Commonwealth Bank of Australia charged 2.3 and 2 percent, respectively.

Oil plays came off the day’s lows, with Santos, Woodside Petroleumand Oil Search narrowing losses to 0.5 and 1.8 percent. Copper producer Oz Minerals also erased a 2 percent loss to trade flat.

Investors are also looking at a slew of earnings releases, with the focus likely on BHP Billiton’s full-year results due after the market close. Shares of the global miner inched down marginally.

Read More: North, South Korea agree to ease recent tensions: Yonhap

Kospi flat

South Korea’s Kospi index changed course yet again to emerge above the flatline. Meanwhile, the junior Kosdaq index climbed 1.9 percent.

A change in direction among refiners and index heavyweights underpinned the rebound in the Seoul bourse. S-Oil and SK Innovationedged up 0.4 percent each, after opening down more than 2 percent earlier on.

The bourse’s top weighted stock Samsung Electronics rose 1.9 percent amid choppy trade, while carmakers Hyundai Motor and Kia Motorsadvanced 4.2 and 5.4 percent, respectively.

Rest of Asia

Taiwan’s weighted index opened near the previous day’s three-year closing low.
However, Singapore’s Straits Times index and Malaysia’s FTSE Bursa Malaysia KLCI index remained on the back foot, down 0.9 and 1.8 percent, respectively.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dow down less than 150 points, S&P tech sect attempts gains

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US stocks plummeted on Monday, following a renewed rout in global markets, under severe pressure from continued fears of slowing growth in China spilling over internationally.

The major averages came sharply off lows in midday trade, with the Nasdaq off less than half a percent after earlier falling 8.8 percent. Apple reversed losses to briefly jump more than 2 percent.

“There was sort of a lack of follow-through after the morning’s crazy action in the overall market,” said Robert Pavlik, chief market strategist at Boston Private Wealth. “The selling really dissipated once we got to around 10 o’clock.”

He attributed some of the late morning gains to a short squeeze and bargain hunting.

Read More: Dow stocks with the biggest buying momentum

S&P 500 traded about 20 points lower as the tech sector attempted slight gains.

The index briefly lost 100 points in the open, initially joining the other major averages in correction territory before trading right on the edge.

The Dow Jones industrial average traded about 120 points lower after falling as much as 1,089 points, or 6.6 percent lower, in the open. The index traveled more than 3,000 points in down and up moves during the first 90 minutes of trade.

Art Hogan, chief market strategist at Wunderlich Securities, noted that the sharp opening losses were due to great uncertainty among traders and the implementation of a rare market rule.

The New York Stock Exchange invoked Rule 48 for the Monday stock market open, Dow Jones reported.

The rule allows NYSE to open stocks without indications. “It was set up for situations like this,” Hogan said. The rule was last used in the financial crisis.

Stock index futures for several major indices fell several percentage points before the open to hit limit down levels.

Circuit breakers for the S&P 500 will halt trade when the index decreases from its previous close by the following three levels: 7 percent, 13 percent, and 20 percent.

“Fear has taken over. The market topped out last week,” said Adam Sarhan, CEO of Sarhan Capital. “We saw important technical levels break last week. Huge shift in investor psychology.”

Read More: Week ahead: Markets seek clarity from China, Fed

“The market is not falling on actual facets of a sub-prime situation. It’s falling on fear of the unload of China. That’s really behind this move,” said Peter Cardillo, chief market economist at Rockwell Global Capital.

The CBOE Volatility Index (VIX), considered the best gauge of fear in the market, traded near 32. Earlier in the session the index leaped above 50 for the first time since February 2009.

“When the VIX is this high it means there’s some panic out there,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab.

However, he said with stocks more than halving losses he “wouldn’t be surprised if we closed positive.” “If you could move it that far you could move it another 350 points” on the Dow,” he said.

Overseas, European stocks plunged, with the STOXX Europe 600 down more than 5 percent, while the Shanghai Composite dropped 8.5 percent, its greatest one-day drop since 2007.

Treasury yields came off session lows, with the U.S. 10-year yield at 2.02 percent and the 2-year yield at 0.59 percent.

The US dollar fell more than 1.5 percent against major world currencies, with the euro near $1.16 and the yen stronger at 119 yen versus the greenback.

The Dow Jones industrial average traded down about 129 points, or 0.79 percent, at 16,332, with UnitedHealth the greatest laggard and Intel leading advancers.

The S&P 500 traded down 19 points, or 0.99 percent, at 1,951, with energy leading most sectors lower and the tech sector briefly attempting gains.

The Nasdaq Composite traded down 19 points, or 0.41 percent, at 4,686.

The Dow transports more than halved losses to trade about 0.9 percent lower.

About five stocks declined for every advancer on the New York Stock Exchange, with an exchange volume of 764 million and a composite volume of 3.3 billion as of 12:45 p.m.

Crude oil futures for October delivery fell $1.33 to $39.14 a barrel on the New York Mercantile Exchange. Gold futures for December delivery fell $2.70 to $1,157.00 an ounce in midday trade.

Earlier, crude oil futures for October delivery fell as much as $2.70 to $37.75 a barrel, a six-and-a-half-year low.

No major economic data or earnings releases were due Monday.

Atlanta Fed President Dennis Lockhart will speak at 3:55 p.m.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This emerging market turmoil isn’t too bad. Here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

As Shanghai stocks crumble, what will China do next?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Shanghai Composite drops 5% to lead Asia selloff

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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China’s stock markets joined the widespread selloff on Monday amid fears surrounding the economic slowdown in the world’s second-biggest economy.

“We are going to see a fearful Asia today, as risk selling activity is expected to blanket the regional markets. Geopolitical tensions in the Korean peninsula are going to add to the weak sentiments,” IG’s market strategist Bernard Aw wrote in a note released early Monday.

Read More: Week ahead: Asia looks to Big Three economies

Wall Street finished deep in the red on Friday as global growth concerns accelerated selling pressure to push the blue-chip Dow Jones Industrial Average and tech-heavy Nasdaq into correction territory.

The Dow and the S&P 500 ended 3.12 percent and 3.19 percent down respectively, while the Nasdaq Composite lost 3.5 percent. On Friday, the major averages had their biggest trade volume day of the year and posted their worst week in four years.

In the commodity space, U.S. West Texas Intermediate (WTI) and the global benchmark Brent, hit fresh 6-year lows on Mondays, to levels last seen during the peak of the credit crunch of 2008-2009. Copper prices clocked up their seventh consecutive weekly loss on Friday.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China stocks lead Asia sell-off

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

China’s stock markets joined the widespread selloff on Monday amid fears surrounding the economic slowdown in the world’s second-biggest economy.

“We are going to see a fearful Asia today, as risk selling activity is expected to blanket the regional markets. Geopolitical tensions in the Korean peninsula are going to add to the weak sentiments,” IG’s market strategist Bernard Aw wrote in a note released early Monday.

Wall Street finished deep in the red on Friday as global growth concerns accelerated selling pressure to push the blue-chip Dow Jones Industrial Average and tech-heavy Nasdaq into correction territory.

The Dow and the S&P 500 ended 3.12 percent and 3.19 percent down respectively, while the Nasdaq Composite lost 3.5 percent. On Friday, the major averages had their biggest trade volume day of the year and posted their worst week in four years.

In the commodity space, US West Texas Intermediate (WTI) and the global benchmark Brent, hit fresh 6-year lows on Mondays, to levels last seen during the peak of the credit crunch of 2008-2009. Copper prices clocked up their seventh consecutive weekly loss on Friday.

Mainland markets lower

China’s benchmark Shanghai Composite index opened down as much as 5.2 percent to 3,321.4, even as authorities allowed pension funds managed by local governments to invest in the stock market for the first time over the weekend. The move could potentially channel hundreds of billions of yuan into the country’s struggling equity market.

Among China’s other indexes, the benchmark CSI300 index – which consists of 300 A-share stocks listed on the Shanghai and Shenzhen stock exchanges – fell 3.5 percent, while the smaller Shenzhen Composite retreated 4.2 percent.

In Hong Kong, the Hang Seng index tracked the sluggishness in its mainland peers to fall 3.3 percent at the start of trade, with heavyweights such as HSBC and China Mobile losing more than 3 percent each.

Nikkei skids 1.9 percent

Japan’s Nikkei 225 index inched up from the morning’s low but remained at a five-month low, hit by a stronger yen which climbed against the U.S. dollar amid cooling bets that the Federal Reserve will raise US interest rates next month.

The Topix index lost nearly 3 percent in early trade, bringing the losses from its eight-year peak hit less than two weeks ago to more than 10 percent.

Export-oriented names were battered by the renewed strength in the local currency; blue-chip Toyota Motor plunged 4.3 percent, while Sony and Canon eased 3.2 and 2.1 percent, respectively.

Index heavyweights also plummeted from the get-go, contributing significant downside to the bourse. SoftBank and Fanuc losing 1.7 and 1.2 percent, respectively.

Meanwhile, the country’s Economics Minister Akira Amari said weakness in China’s economy must be “watched carefully” as it “may spread to ASEAN and other Asian economies,” Reuters reported. Amari adds that he expects China’s economy to settle down as government takes steps to manage growth.

ASX tanks 1.8 percent

Australia’s S&P ASX 200 index sank to its lowest level since July 2014, amid a broad-based sell-off.

In the banking sector, Westpac receded more than 2 percent, while Australia and New Zealand Banking, Commonwealth Bank of Australia and National Australia Bank fell between 1.4 and 1.9 percent.

Santos and Woodside Petroleum eased 6.3 and 2.8 percent, respectively. Market bellwether BHP Billiton tanked 2.7 percent, while Fortescue Metals slumped 8.1 percent after announcing that its annual net profit dropped to USD 316 million Australian dollars (USD 229.5 million) versus AUSD 2.7 billion from a year earlier, as the price of iron ore tumbled.

Meanwhile, New Zealand shares slumped 2 percent in early trade.

Kospi sags 0.2 percent

South Korea’s Kospi index got off lightly compared to regional peers, but the index hovered near a seven-month low amid heightened tensions along the Korean peninsula.

Top aides to the leaders of North and South Korea resumed talks on Sunday after negotiating through the night in a bid to ease tensions involving an exchange of artillery fire that brought the peninsula to the brink of armed conflict.

Early-trade decliners include heavyweights such as Kepco and KB Financial Group, which sagged 2.3 and 1.7 percent, respectively. The bourse’s top weighted stock Samsung Electronics pared early gains to tick down 0.2 percent.

Among gainers, LG Electronics and Shinsegae advanced 3.4 and 2 percent, respectively.

Rest of Asia

Bourses which just came online tracked the downbeat sentiment in the region.

Taiwan’s weighted index opened down 2.6 percent to 7,592, marking its lowest level in over 2 years, even as the Financial Supervisory Commission (FSC) announced early Monday that short selling of stocks below the closing prices of the previous business day will not be permitted.

On the domestic data front, the country’s jobless rate eased slightly to 3.74 percent in July, compared with June’s 3.76 percent.

Singapore’s Straits Times index remained well below the key psychological level of 3,000 points, dropping 2 percent at the open to hit its lowest level in more than 1 year.

Meanwhile, Malaysia’s FTSE Bursa Malaysia KLCI index retreated 1.8 percent to a three-and-a-half-year low, while the ringgit hit a fresh 17-year low against the greenback.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow