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| Version 3 | Version 4 |
|---|---|
| Global stocks sell-off deepens as panic grips markets – live | Global stocks sell-off deepens as panic grips markets – live |
| (35 minutes later) | |
| 3.08pm AEST06:08 | |
| US and European markets set for a hammering again | |
| Stock futures for today’s trading in Europe and the US point to heavy losses again. | |
| The FTSE is pointing to lose more than 200 point sna dthe Dow Jone 400. | |
| 2.54pm AEST05:54 | |
| 2.53pm AEST05:53 | |
| It’s Black Monday with good reason. The Shanghai Composite is down 8.45% today. | |
| Takako Masai, the head of research at Shinsei Bank in Tokyo, said: | |
| 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. | |
| 2.49pm AEST05:49 | |
| They’re calling it Black Monday | |
| 2.44pm AEST05:44 | |
| Taiwan market having worst ever day | |
| 2.42pm AEST05:42 | |
| China to flood market with cash – report | |
| This could be significant. | |
| The Wall Street Journal is reporting that the Chinese authorities have cracked and are about to flood the market with cash in order to halt the alarming fall in the country’s main stock markets and end jitters about its slowing economy. | |
| This – if it happens – will be the cut in the reserve requirement ratio (RRR) that investors expected to come over the weekend. | |
| The expected move to free up more funds for lending – by reducing the deposits banks must hold in reserve – is directly aimed at countering the effects of a weaker currency, which could send more funds away from Beijing’s shores. | |
| Updated at 2.51pm AEST | |
| 2.33pm AEST05:33 | 2.33pm AEST05:33 |
| Not surprisingly, the Hang Seng index in Hong Kong is also having a torrid day, down more than 4%. | Not surprisingly, the Hang Seng index in Hong Kong is also having a torrid day, down more than 4%. |
| 2.29pm AEST05:29 | 2.29pm AEST05:29 |
| In South Korea, another country very exposed to any slowdown in China, the benchmark Kospi index is down by nearly 3%. | In South Korea, another country very exposed to any slowdown in China, the benchmark Kospi index is down by nearly 3%. |
| Last week, South Korea said exports to China fell nearly 12% in the first 20 days of August from a year ago. | Last week, South Korea said exports to China fell nearly 12% in the first 20 days of August from a year ago. |
| 2.22pm AEST05:22 | 2.22pm AEST05:22 |
| Gold is doing OK though as people seek some shelter from the storm. | Gold is doing OK though as people seek some shelter from the storm. |
| It’s close to a seven-week high at $1,160.80 an ounce but traders think it could rally to $1,200 an ounce, a level last seen in June. | It’s close to a seven-week high at $1,160.80 an ounce but traders think it could rally to $1,200 an ounce, a level last seen in June. |
| 2.14pm AEST05:14 | 2.14pm AEST05:14 |
| ... and copper. | ... and copper. |
| Updated at 2.22pm AEST | Updated at 2.22pm AEST |
| 2.12pm AEST05:12 | 2.12pm AEST05:12 |
| It’s not just shares and currencies that are struggling of course. Commodities are taking a real pounding as expectations of less demand from China weigh on investors. | It’s not just shares and currencies that are struggling of course. Commodities are taking a real pounding as expectations of less demand from China weigh on investors. |
| Oil ... | Oil ... |
| Updated at 2.17pm AEST | Updated at 2.17pm AEST |
| 2.09pm AEST05:09 | 2.09pm AEST05:09 |
| Australian dollar falls | Australian dollar falls |
| More from the other markets around Asia in a minute, but just a quick one on the Australian dollar, which is trading at US72.55c, down from 73.02 cents on Friday. | More from the other markets around Asia in a minute, but just a quick one on the Australian dollar, which is trading at US72.55c, down from 73.02 cents on Friday. |
| Stephen Innes, of Oanda Australia and Asia Pacific, said the Aussie was again being hit by concerns about a weaker Chinese economy having a knock-on effect on Australian exports. | Stephen Innes, of Oanda Australia and Asia Pacific, said the Aussie was again being hit by concerns about a weaker Chinese economy having a knock-on effect on Australian exports. |
| Updated at 2.18pm AEST | Updated at 2.18pm AEST |
| 2.02pm AEST05:02 | 2.02pm AEST05:02 |
| Updated at 2.05pm AEST | Updated at 2.05pm AEST |
| 2.00pm AEST05:00 | 2.00pm AEST05:00 |
| 1.57pm AEST04:57 | 1.57pm AEST04:57 |
| Nikkei in Japan now down 4.25% | Nikkei in Japan now down 4.25% |
| Updated at 2.05pm AEST | Updated at 2.05pm AEST |
| 1.52pm AEST04:52 | 1.52pm AEST04:52 |
| BlueScope may cut at least 500 steel jobs | BlueScope may cut at least 500 steel jobs |
| Away from the markets – but still with China – and the Australian steel producer BlueScope says it might have to shed 500 jobs because of weakening demand from the world’s second biggest economy had created massive over-supply. | Away from the markets – but still with China – and the Australian steel producer BlueScope says it might have to shed 500 jobs because of weakening demand from the world’s second biggest economy had created massive over-supply. |
| The Port Kembla-based company said the future of the steel works was “on a knife-edge”. | The Port Kembla-based company said the future of the steel works was “on a knife-edge”. |
| Chief executive Paul O’Malley said demand in China had grown nearly six-fold in 15 years but recently plateaued, moving the country’s producers to treble exports on 2010-14 levels. He said prices had fallen 46 per cent in that time and a third of global capacity was sitting unused. | Chief executive Paul O’Malley said demand in China had grown nearly six-fold in 15 years but recently plateaued, moving the country’s producers to treble exports on 2010-14 levels. He said prices had fallen 46 per cent in that time and a third of global capacity was sitting unused. |
| When there’s oversupply and a shortage of demand – and the equivalent of an extra 50 Port Kemblas on the market globally – you know you have to respond to international competitive pressures. | When there’s oversupply and a shortage of demand – and the equivalent of an extra 50 Port Kemblas on the market globally – you know you have to respond to international competitive pressures. |
| 1.47pm AEST04:47 | 1.47pm AEST04:47 |
| One of the biggest fallers has been Andrew Forrest’s Fortescue Metals Group. | One of the biggest fallers has been Andrew Forrest’s Fortescue Metals Group. |
| Its shares have plunged 12.79% after the company announced a 88% fall in profits this morning on the back of plunging iron ore prices. | Its shares have plunged 12.79% after the company announced a 88% fall in profits this morning on the back of plunging iron ore prices. |
| That’s an ugly figure and while the company expects things to look up in the current year when the benefits of hefty cost cutting kicks in, FMG’s huge exposure to China does not help. Not long ago Forrest was talking gamely about how China’s demand for iron ore felt limitless. | That’s an ugly figure and while the company expects things to look up in the current year when the benefits of hefty cost cutting kicks in, FMG’s huge exposure to China does not help. Not long ago Forrest was talking gamely about how China’s demand for iron ore felt limitless. |
| Australian Mining reported him last year as saying: | Australian Mining reported him last year as saying: |
| A bet against China is the only guarantee of loss I’ve seen for a long time ... 400 million people still have to be urbanised. | A bet against China is the only guarantee of loss I’ve seen for a long time ... 400 million people still have to be urbanised. |
| That view is obviously being quite strenuously tested now as assumptions about growth in China are reassessed. | That view is obviously being quite strenuously tested now as assumptions about growth in China are reassessed. |
| 1.35pm AEST04:35 | 1.35pm AEST04:35 |
| Biggest one-day fall in Australia for four years | Biggest one-day fall in Australia for four years |
| It’s the biggest one-day fall since September 2011 on the Australian market, according to AAP, and it’s taken a whopping $60bn off the overall market value. | It’s the biggest one-day fall since September 2011 on the Australian market, according to AAP, and it’s taken a whopping $60bn off the overall market value. |
| Updated at 1.43pm AEST | Updated at 1.43pm AEST |
| 1.27pm AEST04:27 | 1.27pm AEST04:27 |
| 1.26pm AEST04:26 | 1.26pm AEST04:26 |
| 1.23pm AEST04:23 | 1.23pm AEST04:23 |
| For a good summary of where we’re at across the region today, my colleague Justin McCurry has sent this dispatch from Tokyo. here’s how he starts: | For a good summary of where we’re at across the region today, my colleague Justin McCurry has sent this dispatch from Tokyo. here’s how he starts: |
| Fears of a slowdown in the Chinese economy sent Asia-Pacific stocks plummeting on Monday, days after Wall Street suffered its biggest one-day loss in almost four years. | Fears of a slowdown in the Chinese economy sent Asia-Pacific stocks plummeting on Monday, days after Wall Street suffered its biggest one-day loss in almost four years. |
| 1.20pm AEST04:20 | 1.20pm AEST04:20 |
| Worth remembering though that the Chinese stock market had risen a massive 150% in the past 18 months. In that context a drop of 30% in the past couple of months is nothing to be worried about. | Worth remembering though that the Chinese stock market had risen a massive 150% in the past 18 months. In that context a drop of 30% in the past couple of months is nothing to be worried about. |
| After all, the optimists say, the country is still growing by as much as 7% (maybe 4% if you don’t believe the figures), the service sector is beginning to make up for an admittedly weakening manufacturing sector and there are still millions of people to bring out of poverty. | After all, the optimists say, the country is still growing by as much as 7% (maybe 4% if you don’t believe the figures), the service sector is beginning to make up for an admittedly weakening manufacturing sector and there are still millions of people to bring out of poverty. |
| As the American economist Nicholas Lardy told the Australian: | As the American economist Nicholas Lardy told the Australian: |
| The sceptics have taken insufficient notice of China’s progress in transitioning to its new model of economic growth, one less dependent on expanding industrial output, investment, and exports and more dependent on expanding private consumption expenditure. | The sceptics have taken insufficient notice of China’s progress in transitioning to its new model of economic growth, one less dependent on expanding industrial output, investment, and exports and more dependent on expanding private consumption expenditure. |
| 1.06pm AEST04:06 | 1.06pm AEST04:06 |
| 'There's no good news' | 'There's no good news' |
| An analyst in Shanghai, Qi Yifeng, at consultancy CEBM, put it quite pithily to Reuters. | An analyst in Shanghai, Qi Yifeng, at consultancy CEBM, put it quite pithily to Reuters. |
| The market is in a downtrend. There’s no good news, stocks are still expensive, and there’s no fresh money coming in. With no RRR (reserve requirement) cut over the weekend, the market will directly head south. | The market is in a downtrend. There’s no good news, stocks are still expensive, and there’s no fresh money coming in. With no RRR (reserve requirement) cut over the weekend, the market will directly head south. |
| 1.04pm AEST04:04 | 1.04pm AEST04:04 |
| After starting to devalue the yuan two weeks ago caused further selling on its main stock exchanges, investors expected Beijing to introduce some more calming measures at the weekend. | After starting to devalue the yuan two weeks ago caused further selling on its main stock exchanges, investors expected Beijing to introduce some more calming measures at the weekend. |
| But despite new rules allowing pension funds to invest in the stock market – quite a good idea on the face of it and another step towards reforming the financial system in China – the market has been sold heavily today and is currently down 7.92%. | But despite new rules allowing pension funds to invest in the stock market – quite a good idea on the face of it and another step towards reforming the financial system in China – the market has been sold heavily today and is currently down 7.92%. |
| Updated at 1.27pm AEST | Updated at 1.27pm AEST |
| 12.53pm AEST03:53 | 12.53pm AEST03:53 |
| Seems sensible to look first in more depth at what’s happening in China this morning given that most people agree that’s where the problems are stemming from. | Seems sensible to look first in more depth at what’s happening in China this morning given that most people agree that’s where the problems are stemming from. |
| For an expert analysis of the background I can point you to the Guardian’s own economics brains trust of Larry Elliott and Philip Inman who wrote at the weekend about how concerns about China’s slowing economy will spread to other emerging markets. Here’s a snippet. | For an expert analysis of the background I can point you to the Guardian’s own economics brains trust of Larry Elliott and Philip Inman who wrote at the weekend about how concerns about China’s slowing economy will spread to other emerging markets. Here’s a snippet. |
| The problem is a relatively simple one. In the post-Great Recession world, the tendency has been for all countries to try to export their way out of trouble. But this model works only if the exports can find a home, as they did when China was growing at double-digit rates. | The problem is a relatively simple one. In the post-Great Recession world, the tendency has been for all countries to try to export their way out of trouble. But this model works only if the exports can find a home, as they did when China was growing at double-digit rates. |
| But in the past 18 months, the Chinese economy has slowed, causing problems for two distinct groups of emerging-market economies – the east Asian countries that sell components and finished goods to their big neighbour, and countries that supply China with the fuel and raw materials to keep its industrial machine going. | But in the past 18 months, the Chinese economy has slowed, causing problems for two distinct groups of emerging-market economies – the east Asian countries that sell components and finished goods to their big neighbour, and countries that supply China with the fuel and raw materials to keep its industrial machine going. |
| Updated at 1.26pm AEST | Updated at 1.26pm AEST |
| 12.46pm AEST03:46 | 12.46pm AEST03:46 |
| Summary | Summary |
| It’s pretty grim out there so I’ll set out the main points so far: | It’s pretty grim out there so I’ll set out the main points so far: |
| Hold on to those hats. | Hold on to those hats. |
| 12.36pm AEST03:36 | 12.36pm AEST03:36 |
| Global rout intensifies | Global rout intensifies |
| Good afternoon and welcome to the markets live blog. It’s been a very lively morning across the Asia Pacific region following on from last week’s China-inspired heavy selling here and on Wall Street and in Europe on Friday. | Good afternoon and welcome to the markets live blog. It’s been a very lively morning across the Asia Pacific region following on from last week’s China-inspired heavy selling here and on Wall Street and in Europe on Friday. |
| Stock markets, commodities and currencies are being smashed. | Stock markets, commodities and currencies are being smashed. |