Asia stocks sag as China falls gather velocity
Asian stocks slumped to 3-year lows on Monday as a slide in Chinese equities gathered pace, hastening an exodus from riskier assets as fears of a China-led global economic slowdown churned through markets.
A 2.9 percent fall in S&P 500 mini futures ESc1 to a 10-month trough during Asian trading hours suggested the falls could continue later in the global session.
Against this gloomy backdrop, spreadbetters forecast a sharply lower open for Britain's FTSE .FTSE, Germany's DAX .GDAXI and France's CAC .FCHI indexes.
Safe-haven government bonds and the yen rallied on the widespread unrest in financial markets, set in motion when China sharply devalued its yuan and stoked fears about the state of its economy.
"Markets are panicking. Things are starting look like the Asian financial crisis in the late 1990s. Speculators are selling assets that seem the most vulnerable," said Takako Masai, the head of research at Shinsei Bank in Tokyo.
Stock exchanges from Japan to Indonesia were hit hard as Chinese shares slid from the open on Monday after Beijing offered no big policy move at the weekend to support equities, as was widely expected after last week's 11 percent plunge.
Shanghai shares .SSEC dived 9 percent to a six-month low, wiping out this year's gains. [.SS]
"The market is in a downtrend. There's no good news, stocks are still expensive, and there's no fresh money coming in," said Qi Yifeng, analyst at consultancy CEBM.
"With no RRR (reserve requirement) cut over the weekend, the market will directly head south."
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS duly sank 5.1 percent to a three-year low. Tokyo's Nikkei .N225 was down 4.1 percent and Australian shares retreated to a two-year trough.
"China could be forced to devalue the yuan even more, should its economy falter, and the equity markets are dealing with the prospect of a weaker yuan amplifying the negative impact from a sluggish Chinese economy," said Eiji Kinouchi, chief technical analyst at Daiwa Securities in Tokyo.
Indonesia's stock index .JKSE fell 4.3 percent to its lowest point since December 2013, as the global market sold off concerns over China's economy. [MKTS/GLOB]
A Caixin/Markit PMI survey on Friday showed Chinese manufacturing activity shrank at the fastest pace since 2009.
Even before the Chinese markets opened, stocks in Asia took a beating after fears of a China-led global economic slowdown drove Wall Street, previously seen as a safe-haven, to its steepest one-day drop in nearly four years on Friday.
The cost to insure China’s five-year government debt CNGV5YUSAC=MG with credit default swaps (CDS) rose on Monday to around 117 basis points, or $117,000 per year for five years to insure $10 million in debt, from around 100 basis points last week, according to Markit data.
South Africa's rand ZAR=D3 briefly touched a new all-time low of 14.0000 against the dollar.
The Malaysian ringgit hit a 17-year low MYR=MY.
The dollar was down 0.8 percent at 120.98 yen JPY= after hitting a six-week low of 120.73. The euro soared to a 6-1/2 month high of $1.1499.
U.S. Treasury yields extended their decline on safety buying alongside the slide in equities. The benchmark 10-year Treasury note yield US10YT=RR touched a four-month low below 2 percent.
Brent and U.S. crude oil futures hit fresh 6-1/2-year lows as concerns about a global supply glut added to worries over potentially weaker demand from China. [O/R]
U.S. crude was down 2.8 percent at $39.33 a barrel CLc1 while Brent LCOc1 lost 2.4 percent to $44.35 a barrel.
Copper, seen as a barometer of global industrial demand, tumbled with three-month copper on the London Metal Exchange CMCU3 hitting a six-year low of $4,920 a tonne. Aluminum CMAL3 also slid to its lowest since 2009 of $1,526 a tonne.echo "Monir"; /* other country*/
- Turkey's ambassador to Dhaka
- 'Ice Age: New trailer collision: the threat of global asteroids
- Bale hits real winner
- Woman found dead in a city hotel
- Withdrawal of unemployed nurses strike
- Tangail filed on Hindu murder case
- Foreign Minister meets King Abdullah Foundation trip in Saudi Arabia, Prince Turkey
- Hasina praised Bangladesh bowling sensation Mustafizur
- Rains in Sylhet, the heat wave plays extra time in the rest of Bangladesh
- BNP chief Khaleda sees more danger than ever before in Bangladesh
- I do not want it, I want to win: Dunga
- Asks the Bangladesh government to take a strong position against killer:Denmark
- My mom is not here to meet Neetu Kapoor, Katrina Kaif clear
- ICC World T20: England Qualify For Final
- Tonu murder sad every part of the army, says ISPR
- ADB Bangladesh sees FY GDP growing at 6.7% in 2015-16
- Court orders arrest of Khaleda's deadly bus firebombing in Dhaka
- Standard Chartered cards stop working due to a down server
- BNP logo, theme, slogan unveils Council
- Corruption can progress obstruction of a country: President
- The uncertainty of the cloud cleared, Hero 420, released Friday
- To suggest pollution to protect your skin
- Trouble in Parliament to answer questions on the delay Interior Minister
- Hasina urges teachers to promote sports
- 5D can record human history!
- I'm still a child, says Kareena
- Saudi, Russia agreed oil production freeze
- Twenty20 World Cup announced
- The death of former chief Boutros-ghali UN
- Arrest warrant issued against Daily Star editor
- Per capita income of Bangladesh 2014-15, increasing to $ 1.316 in fiscal year
- Khaleda Zia subcommittees for BNP
- BSMMU Abdul Hannan appointed new Register
- Citizens can update fingerprints for the ceremony at the office
- Executes N Korea army chief
- Twenty20 Women World Cup team announced
- Star Journo concern over the threat to the leader, its editor
- US 'Intel warning of the details of the terrorist group in Bangladesh
- To be tried Padma bridge 'conspirators': Prime Minister
- Road crashes: High Court order on all hospital emergency service
- muslin and fund research: analyst
- Chief Justice appeal eats division into three judges
- Keraniganj prime murder suspect killed in shootout school Abdullah: RAB
- Bangladesh lost a High Court for staff accommodation
- ICT sentence Taher, Noni Netrokona death
- Ghazipur knife 2 DB
- French minister at the UN sends carbon pricing
- '' Now it Rabby no bar
- Khulna JCD President Kamran held
- Police want Bank Medical College
- Fakhrul went to Singapore for treatment
- Apple warns iPhone sales to fall
- Kristen Stewart speaks up on gender inequality
- China to increase JVs in Bangladesh
- Konta 33-year British drought to break beats Zhang
- India waives visa fees Bangladesh
- Patient's death: 2 CTG doctors get bail
- Specialised police to combat terrorism: PM
- The school forced students to buy additional books
- Romance to change you as a person does
- AL betrayed the spirit of liberation war: khalida
- 3 JMB suspects held in the capital: police
- CM: Facebook 'decision soon
- Ljajic Napoli Inter operates two Clear
- Adopted the United Nations climate-line store
- Yemen's Aden's governor killed in car bomb blast
- 3 ministers sat down with Facebook official
- Mother and teenaged daughter found hanging
- Facebook Bangladesh reply
- Supreme retain security Fakhrul
- Niko bribery case: Court khalida
- NZ seeking clarification over the controversial decision DRS
- Weather-defense conference in Paris World leaders
- Held in Satkhira 5 BNP-Jamaat among 25 people
- MIM is a fantastic co-star: Soham
- World Cup 2015: Dhoni's men will be wary of Bangladesh
- 44 years later widows receive justice: sajib wazed joy
- An eve teasing incident scarred my life
- Employee bonuses decline at Cognizant
- Man allegedly kill wife
- Happy loses Lawyer
- Dr. Yunus...................Three Zero Theory
- BNP leader Nasir Uddin Ahmed Pinto dies
- Shamsul Hoque Khan School top....... in Dhaka broad
- Think different! Try sex in storeroom
- Finance Minister AMA Muhith to place budget for seventh time... Budget
- High Court says : Why not second time in DU
- Kim Kardashian to strip nude again
- Refused bail petition of ..... Ruhul Kabir Rizvi
- Jatiya Sangsad begins with .... Budget session
- Mashrafe-Rubel broke the English lineup
- DU student Suicide in Dhaka
- Mahmudullah hits first WC century for Bangladesh
- Women as Vice Chancellor ........in Oxford University
- BNP faces organisational breakdown
- Satyajit Ray's wife dies............. Bijoya Ray
- Student gets death penalty for ...Murder
- The forgotten memory.......burning
- you should definitely do in a lifetime... 10 thngs
- Office hour 9 AM to 3 PM... During Ramadan