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| FTSE plunges 2.8% as China sparks global markets crisis - live | FTSE plunges 2.8% as China sparks global markets crisis - live |
| (35 minutes later) | |
| 8.57am BST08:57 | |
| Stock markets are gripped by a “deep funk”, says Kit Juckes of French bank Société Générale. | |
| Kit identifies three key factors behind today’s rout: | |
| Commodity prices have hit their lowest levels in 16 years, thanks to the Chinese slowdown. And that is making traders very worried, as Kit explains: | |
| The divergence between global commodity prices and equities is not a new theme but the danger now is that they begin to re-correlate - as they did when the dotcom bubble burst in 2000 and what had previously been an emerging market crisis became a US recession. | |
| And @kitjuckes defines markets today like no other: 'deep funk' | |
| 8.43am BST08:43 | |
| Mining companies hit by China panic | |
| Shares in mining companies are being hammered this morning, taking the brunt of this morning’s selloff in the City. | |
| Anglo America, which produces iron ore, copper, manganese, nickel and coal, has slumped by 6%. | |
| Glencore, the commodity trading giant, is close behind, along with silver producer Fresnillo and then BHP Billiton. | |
| The mining sector is clearly exposed to China’s slowing economy. But today’s sell-off has spread much wider -- every company on the FTSE 100 has fallen this morning. | |
| Tony Cross, market analyst of Trustnet, says: | |
| Any hopes that the last week of August would pass off in unremarkable fashion for equity traders has been dashed as the London market opened for business.... | |
| Panic is genuinely gripping the mining stocks which collectively have dumped £5bn of value already this morning. | |
| 8.24am BST08:24 | |
| Chinese market suffers biggest fall since 2007 | Chinese market suffers biggest fall since 2007 |
| Investors in Beijing can finally take a breather after the worst day’s trading since the start of the global financial crisis eight years ago. | Investors in Beijing can finally take a breather after the worst day’s trading since the start of the global financial crisis eight years ago. |
| After a dramatic day’s trading, the Shanghai Composite index has just closed down a jaw-dropping 8.5%, at 3209 points. | After a dramatic day’s trading, the Shanghai Composite index has just closed down a jaw-dropping 8.5%, at 3209 points. |
| That’s its biggest one-day slump since 2007, explaining why Chinese media were quick to dub today Black Monday. | That’s its biggest one-day slump since 2007, explaining why Chinese media were quick to dub today Black Monday. |
| The Shanghai stock market has now lost all its gains this year. Umpteen stocks were suspended today after falling 10% - the maximum allowed under Beijing’s rules. | The Shanghai stock market has now lost all its gains this year. Umpteen stocks were suspended today after falling 10% - the maximum allowed under Beijing’s rules. |
| And there could be worse days ahead, analysts predict, as fears grow that the Chinese economy is heading for a hard landing. | And there could be worse days ahead, analysts predict, as fears grow that the Chinese economy is heading for a hard landing. |
| Bloomberg reports: | Bloomberg reports: |
| “This is a real disaster and it seems nothing can stop it,” said Chen Gang, Shanghai-based chief investment officer at Heqitongyi Asset Management Co. | “This is a real disaster and it seems nothing can stop it,” said Chen Gang, Shanghai-based chief investment officer at Heqitongyi Asset Management Co. |
| “If we don’t cut holdings ourselves, the fund faces risk of forced closure. Many newly started private funds suffered that recently. I hope we can survive.” | “If we don’t cut holdings ourselves, the fund faces risk of forced closure. Many newly started private funds suffered that recently. I hope we can survive.” |
| 8.15am BST08:15 | |
| The FTSE 100 just slumped below the 6,000 point mark for the first time since the start of 2013, in rather choppy trading: | The FTSE 100 just slumped below the 6,000 point mark for the first time since the start of 2013, in rather choppy trading: |
| 8.09am BST08:09 | |
| Germany’s stock market appears to have crashed into bear market territory, down more than 20% from its recent high. | Germany’s stock market appears to have crashed into bear market territory, down more than 20% from its recent high. |
| Looks like a #bear market to me...-20% from April high on German stocks #DAX pic.twitter.com/7Ci4s2h45M | Looks like a #bear market to me...-20% from April high on German stocks #DAX pic.twitter.com/7Ci4s2h45M |
| 8.05am BST08:05 | |
| Across Europe, stock markets are deep in the red. | Across Europe, stock markets are deep in the red. |
| Spain’s IBEX is down 3.3%, Italy’s FTSE MIB is down 3.%% and the Portuguese PSI 20 has shed 4.4%. | Spain’s IBEX is down 3.3%, Italy’s FTSE MIB is down 3.%% and the Portuguese PSI 20 has shed 4.4%. |
| 8.04am BST08:04 | |
| Germany’s DAX index has fallen by 3%, dropping below the 10,000 point mark for the first time since January. | Germany’s DAX index has fallen by 3%, dropping below the 10,000 point mark for the first time since January. |
| 8.03am BST08:03 | |
| FTSE 100 plunges 2.8% at the open | FTSE 100 plunges 2.8% at the open |
| Trading is underway in the City, and shares are falling fast. | Trading is underway in the City, and shares are falling fast. |
| The FTSE 100 index tumbled 2.8%, shedding 175 points to hit a low of 6012 points. | The FTSE 100 index tumbled 2.8%, shedding 175 points to hit a low of 6012 points. |
| It’s now settling around 6030 points as traders flood the market with sell orders. | It’s now settling around 6030 points as traders flood the market with sell orders. |
| 7.57am BST07:57 | |
| I’m now handing over to Graeme Wearden in London. I’ll be back tomorrow. Thank you. | I’m now handing over to Graeme Wearden in London. I’ll be back tomorrow. Thank you. |
| 7.55am BST07:55 | |
| Just five minutes until the European stock markets open... | Just five minutes until the European stock markets open... |
| FTSE set to open 188 points lower, at 6000. Out of hours Dow around 400 points lower than Friday's close, at 16,057. | FTSE set to open 188 points lower, at 6000. Out of hours Dow around 400 points lower than Friday's close, at 16,057. |
| 7.55am BST07:55 | |
| Oliver Holmes | Oliver Holmes |
| Thailand’s stock exchange has been hit by the global selloff, dropping 3.84%, or 52.43 points, to 1,313.18. | Thailand’s stock exchange has been hit by the global selloff, dropping 3.84%, or 52.43 points, to 1,313.18. |
| The stock exchange in Thailand also suffered last week following a bomb attack at a Hindu shrine in the capital that killed 20, including tourists. The Thai economy is dependent on tourism revenues, accounting for up to 10% of GDP. | The stock exchange in Thailand also suffered last week following a bomb attack at a Hindu shrine in the capital that killed 20, including tourists. The Thai economy is dependent on tourism revenues, accounting for up to 10% of GDP. |
| 7.54am BST07:54 | |
| Here’s the official ASX 200 closing figure. Some $70bn has been lost from the market’s overall value, AAP reports, in the index’s worst one-day trading for six years. And it’s now at a two-year low. | Here’s the official ASX 200 closing figure. Some $70bn has been lost from the market’s overall value, AAP reports, in the index’s worst one-day trading for six years. And it’s now at a two-year low. |
| Australian Stock Report head of research Chris Conway says the market could go lower if it drops below 5,000 points. | Australian Stock Report head of research Chris Conway says the market could go lower if it drops below 5,000 points. |
| Right now, there is clearly some panic selling occurring and there is little in the way of technical support below the current market price. | Right now, there is clearly some panic selling occurring and there is little in the way of technical support below the current market price. |
| Updated at 8.01am BST | |
| 7.40am BST07:40 | |
| More strong comments from Rajiv Biswas, chief Asia economist for IHS Global Insight, who has been speaking to our man in Beijing. He says that the problem for investors is that the authorities in Beijing aren’t making a very good fist of dealing with this market business. As our the Guardian’s economics guru Larry Elliott wrote last week, it’s as if everyone is realising that China might not have all the answers. | More strong comments from Rajiv Biswas, chief Asia economist for IHS Global Insight, who has been speaking to our man in Beijing. He says that the problem for investors is that the authorities in Beijing aren’t making a very good fist of dealing with this market business. As our the Guardian’s economics guru Larry Elliott wrote last week, it’s as if everyone is realising that China might not have all the answers. |
| Anyway, here’s what Rajiv has said: | Anyway, here’s what Rajiv has said: |
| We have seen quite big corrections ever since the middle of June and it has created some policy responses from the Chinese government but up to they have been piecemeal. There hasn’t been any consolidated effort. It is almost as if they don’t really know what to do. | We have seen quite big corrections ever since the middle of June and it has created some policy responses from the Chinese government but up to they have been piecemeal. There hasn’t been any consolidated effort. It is almost as if they don’t really know what to do. |
| That is adding to the negative sentiment. That is playing out in the stock market and it is also playing out in the commodities markets because as people fear Chinese growth is slowing down more, we are seeing the commodities sector also taking a further [move] downwards. | That is adding to the negative sentiment. That is playing out in the stock market and it is also playing out in the commodities markets because as people fear Chinese growth is slowing down more, we are seeing the commodities sector also taking a further [move] downwards. |
| Updated at 7.43am BST | |
| 7.40am BST07:40 | |
| Photos: Chinese investors watch 'Black Monday' unfold | Photos: Chinese investors watch 'Black Monday' unfold |
| There were dark faces across brokerage houses in Beijing today as small investors watched shares tumble, dragging the Shanghai Composite index down over 8% in late trading. | There were dark faces across brokerage houses in Beijing today as small investors watched shares tumble, dragging the Shanghai Composite index down over 8% in late trading. |
| Updated at 8.01am BST | |
| 7.34am BST07:34 | |
| It’s closing time elsewhere. | It’s closing time elsewhere. |
| 7.30am BST07:30 | |
| The Philippines’ stock market has slumped over 7% today to a 14-month low, amid the global stock market rout. | The Philippines’ stock market has slumped over 7% today to a 14-month low, amid the global stock market rout. |
| Updated at 7.30am BST | |
| 7.25am BST07:25 | |
| Australian market closes down 4% – worst one-day fall for six years | Australian market closes down 4% – worst one-day fall for six years |
| The ASX 200 index was down 213.3 points, or 4.09% lower at 5,001.3. The broader All Ordinaries index was down 210.6 points, or 4.03%, at 5,014.2. | The ASX 200 index was down 213.3 points, or 4.09% lower at 5,001.3. The broader All Ordinaries index was down 210.6 points, or 4.03%, at 5,014.2. |
| Updated at 8.00am BST | |
| 7.23am BST07:23 | |
| 7.22am BST07:22 | |
| Money is surging into German government debt, or bunds, this morning, as nervous investors brace for trouble ahead. | Money is surging into German government debt, or bunds, this morning, as nervous investors brace for trouble ahead. |
| Buying bunds is a classic safe-haven trade – they don’t offer a very good interest rate, but you’re pretty well certain to get your money back. | Buying bunds is a classic safe-haven trade – they don’t offer a very good interest rate, but you’re pretty well certain to get your money back. |
| Brutal #stock opening lined up for Europe...futures show 3% slumps in Germany/France & money into havens of German debt #selloff | Brutal #stock opening lined up for Europe...futures show 3% slumps in Germany/France & money into havens of German debt #selloff |
| Updated at 7.28am BST | |
| 7.19am BST07:19 | |
| The Aussie dollar has been sold heavily today. it’s currently buying US72.28c having dropped just over 1% since friday. | The Aussie dollar has been sold heavily today. it’s currently buying US72.28c having dropped just over 1% since friday. |
| And it could get worse, some people think. | And it could get worse, some people think. |
| 7.17am BST07:17 | |
| Japan's Nikkei posts biggest fall since June 2013 | Japan's Nikkei posts biggest fall since June 2013 |
| Japan’s Nikkei index has suffered its biggest one-day sell-off in over two years, after a day of hectic selling sparked by growing fears over China. | Japan’s Nikkei index has suffered its biggest one-day sell-off in over two years, after a day of hectic selling sparked by growing fears over China. |
| The Tokyo stock market just closed with the Nikkei down 4.61%, its biggest one-day fall since June 2013. | The Tokyo stock market just closed with the Nikkei down 4.61%, its biggest one-day fall since June 2013. |
| The Topix index, which includes more smaller Japanese companies, slumped by 5.8%. That puts the Topix into ‘correction territory’, down more than10% since its recent peak. | The Topix index, which includes more smaller Japanese companies, slumped by 5.8%. That puts the Topix into ‘correction territory’, down more than10% since its recent peak. |
| #Japan | *JAPAN'S TOPIX SLUMPS MOST SINCE MAY 2013 TO ENTER CORRECTION pic.twitter.com/I7g8yy7Ts1 | #Japan | *JAPAN'S TOPIX SLUMPS MOST SINCE MAY 2013 TO ENTER CORRECTION pic.twitter.com/I7g8yy7Ts1 |
| Updated at 7.59am BST | |
| 7.14am BST07:14 | |
| More reaction via our man Tom Phillips in Beijing. | More reaction via our man Tom Phillips in Beijing. |
| Rajiv Biswas, the chief Asia economist for IHS Global Insight, said Black Monday was one of the strongest signals yet that Beijing was not doing enough to tackle the crisis. | Rajiv Biswas, the chief Asia economist for IHS Global Insight, said Black Monday was one of the strongest signals yet that Beijing was not doing enough to tackle the crisis. |
| The private money is all trying to get out of the market and what is holding up the market is only the government intervention. | The private money is all trying to get out of the market and what is holding up the market is only the government intervention. |
| It’s been piecemeal efforts through the course of the year with several small cuts in interest rates, some fiscal stimulus measures scattered around in recent months. | It’s been piecemeal efforts through the course of the year with several small cuts in interest rates, some fiscal stimulus measures scattered around in recent months. |
| But you haven’t seen any decisive action and there is no sense of determination coming out of policy makers that they want to turn the economy around. | But you haven’t seen any decisive action and there is no sense of determination coming out of policy makers that they want to turn the economy around. |
| Updated at 7.43am BST | |
| 7.10am BST07:10 | |
| For you Simpsons fans. | For you Simpsons fans. |
| 7.08am BST07:08 | |
| Australia's A&P/ASX 200 is down 3.73% at 5,020 | Australia's A&P/ASX 200 is down 3.73% at 5,020 |
| The Australian market has had a shocker. The ASX 200 has closed down nearly 4% for its worst day for four years. It’s now at a two-year low. | The Australian market has had a shocker. The ASX 200 has closed down nearly 4% for its worst day for four years. It’s now at a two-year low. |
| Updated at 7.29am BST | |
| 7.06am BST07:06 | |
| Traders in Europe are bracing for a heavy sell-off when the stock markets open, in one hour’s time. | Traders in Europe are bracing for a heavy sell-off when the stock markets open, in one hour’s time. |
| The FTSE 100 is currently expected to tumble below the 6000-point mark for the first time since the start of January 2013. | The FTSE 100 is currently expected to tumble below the 6000-point mark for the first time since the start of January 2013. |
| Other European markets are heading for a bath – having already tumbled on Friday. | Other European markets are heading for a bath – having already tumbled on Friday. |
| Our European opening calls: $FTSE 5981 down 206 $DAX 9711 down 413 $CAC 4472 down 159 $IBEX 9851 down 421 $MIB 20874 down 872 | Our European opening calls: $FTSE 5981 down 206 $DAX 9711 down 413 $CAC 4472 down 159 $IBEX 9851 down 421 $MIB 20874 down 872 |
| The slowdown in China, and the surprise devaluation of the Chinese yuan this month, has forced investors into a sharp rethink. | The slowdown in China, and the surprise devaluation of the Chinese yuan this month, has forced investors into a sharp rethink. |
| Ian Williams of Peel Hunt, the City stockbrokers, explains: | Ian Williams of Peel Hunt, the City stockbrokers, explains: |
| Earnings-based valuations have retreated dramatically from their previous extended levels; the issue now is the extent to which concerns over global growth hamper the corporate profits outlook. | Earnings-based valuations have retreated dramatically from their previous extended levels; the issue now is the extent to which concerns over global growth hamper the corporate profits outlook. |
| Updated at 7.27am BST | |
| 6.57am BST06:57 | |
| Important again to remember that the Chinese market had more than doubled in value in the 18 months or so leading up to June. A 30% fall in recent weeks is not much when measured against a rise of 150% and you could argue it’s a natural correction. | Important again to remember that the Chinese market had more than doubled in value in the 18 months or so leading up to June. A 30% fall in recent weeks is not much when measured against a rise of 150% and you could argue it’s a natural correction. |
| The respected Australian economist Saul Eslake believes the concerns about China, which are reflected in the sell-off there and overseas, are slightly overdone. | The respected Australian economist Saul Eslake believes the concerns about China, which are reflected in the sell-off there and overseas, are slightly overdone. |
| He told Guardian Australia that the country’s growing service industry is gradually overtaking the manufacturing sector as a share of GDP. He also noted that the property market in the biggest cities is “stabilising” although the smaller cities were “still weak”. | He told Guardian Australia that the country’s growing service industry is gradually overtaking the manufacturing sector as a share of GDP. He also noted that the property market in the biggest cities is “stabilising” although the smaller cities were “still weak”. |
| And he believed that the recent devaluation of the yuan was not an attempt to stimulate flagging exports but was a genuine attempt to reform the forex regime and to try to get ahead of any possible rate cut by the US Fed. | And he believed that the recent devaluation of the yuan was not an attempt to stimulate flagging exports but was a genuine attempt to reform the forex regime and to try to get ahead of any possible rate cut by the US Fed. |
| It’s a move to be more flexible ahead of a Fed rate cut. The yuan is up 20% in trade-weighted terms so they wanted wriggle room if the Fed cuts rates and the US dollar rises. | It’s a move to be more flexible ahead of a Fed rate cut. The yuan is up 20% in trade-weighted terms so they wanted wriggle room if the Fed cuts rates and the US dollar rises. |
| Updated at 7.09am BST | |
| 6.35am BST06:35 | |
| He adds: | He adds: |
| As investors see more selling they also want to get out. | As investors see more selling they also want to get out. |
| He said the continued panic reflected a lack of faith in Beijing’s attempts to prop up the stock market. | He said the continued panic reflected a lack of faith in Beijing’s attempts to prop up the stock market. |
| I think the sell down is probably going to continue for the next few sessions. | I think the sell down is probably going to continue for the next few sessions. |
| Updated at 7.07am BST | |
| 6.33am BST06:33 | |
| More reaction from my colleague Tom Phillips in Beijing, who’s been talking to market experts. | More reaction from my colleague Tom Phillips in Beijing, who’s been talking to market experts. |
| Bernard Aw, a market analyst from IG in Singapore, has used the “P” word. | Bernard Aw, a market analyst from IG in Singapore, has used the “P” word. |
| Risk sentiment is really on the verge of panic which is why we are seeing plenty of red screens. | Risk sentiment is really on the verge of panic which is why we are seeing plenty of red screens. |
| Updated at 6.58am BST | |
| 6.26am BST06:26 | |
| Shanghai Composite now down 8.7% | Shanghai Composite now down 8.7% |
| Despite reasons for optimism, the authorities in Beijing are struggling to keep things under control. | Despite reasons for optimism, the authorities in Beijing are struggling to keep things under control. |
| The Shanghai Comp is now down 8.7% at 3202. If it closes anywhere below 3233 points, it will have lost all its gains for the year. | The Shanghai Comp is now down 8.7% at 3202. If it closes anywhere below 3233 points, it will have lost all its gains for the year. |
| Angus Nicholson of IG again: | Angus Nicholson of IG again: |
| A disastrous result for China, after working so hard to breathe life back into domestic equities after the 2007 crash and having spent hundreds of billions of dollars propping up the market since June. | A disastrous result for China, after working so hard to breathe life back into domestic equities after the 2007 crash and having spent hundreds of billions of dollars propping up the market since June. |
| Updated at 6.58am BST | |
| 6.23am BST06:23 | |
| But as Angus Nicholson points out, you could argue that the world economic situation doesn’t really warrant this panic selling. | But as Angus Nicholson points out, you could argue that the world economic situation doesn’t really warrant this panic selling. |
| The current global economic environment does not seem to warrant such a dramatic sell-off. Volumes in global markets are famously thin in August, possibly leading to these outsized moves. Investors will be looking to major news announcements this week that may change sentiment in global markets and provide a floor to these downward moves. Thursday will see the release of US GDP and PCE inflation data, the beginning of the Jackson Hole symposium, and the release of Japanese CPI data. Although if markets continue to decline at this rate until then, we could be seeing an even more serious correction than in 2010 or 2011. | The current global economic environment does not seem to warrant such a dramatic sell-off. Volumes in global markets are famously thin in August, possibly leading to these outsized moves. Investors will be looking to major news announcements this week that may change sentiment in global markets and provide a floor to these downward moves. Thursday will see the release of US GDP and PCE inflation data, the beginning of the Jackson Hole symposium, and the release of Japanese CPI data. Although if markets continue to decline at this rate until then, we could be seeing an even more serious correction than in 2010 or 2011. |
| Updated at 6.57am BST | |
| 6.18am BST06:18 | |
| Angus Nicholson, of IG Markets, has an interesting take on the day’s turmoil. He says the recent annual meeting of the country’s top leadership must have seen some pretty heavy chat about the economy with the country facing a momentous fork in the road. | Angus Nicholson, of IG Markets, has an interesting take on the day’s turmoil. He says the recent annual meeting of the country’s top leadership must have seen some pretty heavy chat about the economy with the country facing a momentous fork in the road. |
| It is a key moment for China. The equity market in free fall, the banking system increasingly starved of liquidity, rising capital outflows, and a rapidly slowing economy. The annual meeting of the top leadership at Beidaihe has ended (one of the reasons Li Keqiang was delayed in visiting Tianjin), and no doubt there were very serious discussions over how the 7% growth target is going to be met. That target is now looking overly ambitious, and the most sensible way forward would seemingly involve further currency devaluation, further RRR cuts, and stepped up fiscal stimulus. | It is a key moment for China. The equity market in free fall, the banking system increasingly starved of liquidity, rising capital outflows, and a rapidly slowing economy. The annual meeting of the top leadership at Beidaihe has ended (one of the reasons Li Keqiang was delayed in visiting Tianjin), and no doubt there were very serious discussions over how the 7% growth target is going to be met. That target is now looking overly ambitious, and the most sensible way forward would seemingly involve further currency devaluation, further RRR cuts, and stepped up fiscal stimulus. |
| Updated at 6.56am BST | |
| 6.11am BST06:11 | |
| Summary | Summary |
| It’s been a torrid day so far on financial markets across the Asia- Pacific on what Chinese media are calling “Black Monday”, in an echo of the infamous global stock market meltdown of 1987. | It’s been a torrid day so far on financial markets across the Asia- Pacific on what Chinese media are calling “Black Monday”, in an echo of the infamous global stock market meltdown of 1987. |
| But the main points are these: | But the main points are these: |
| Updated at 6.56am BST | |
| 6.08am BST06:08 | |
| US and European markets set for a hammering again | 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. | 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 points and the Dow Jones 400. | The FTSE is pointing to lose more than 200 points and the Dow Jones 400. |
| Updated at 6.30am BST | |
| 5.54am BST05:54 | |
| 5.53am BST05:53 | |
| It’s Black Monday with good reason. The Shanghai Composite is down 8.45% today. | 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: | 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. | 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. |
| 5.49am BST05:49 | |
| They’re calling it Black Monday | They’re calling it Black Monday |
| 5.44am BST05:44 | |
| Taiwan market having worst ever day | Taiwan market having worst ever day |
| 5.42am BST05:42 | |
| China to flood market with cash – report | China to flood market with cash – report |
| This could be significant. | This could be significant. |
| The Wall Street Journal is reporting that Chinese authorities have cracked and are about to flood the market with cash to halt the alarming fall in the country’s main stock markets and end jitters about its slowing economy. | The Wall Street Journal is reporting that Chinese authorities have cracked and are about to flood the market with cash 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 at the weekend. | This – if it happens – will be the cut in the reserve requirement ratio (RRR) that investors expected to come at 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. | 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 6.54am BST | |
| 5.33am BST05:33 | |
| 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%. |
| 5.29am BST05:29 | |
| 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. |
| Updated at 6.53am BST | |
| 5.22am BST05:22 | |
| 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 $1160.80 an ounce but traders think it could rally to $1200 an ounce, a level last seen in June. | It’s close to a seven-week high at $1160.80 an ounce but traders think it could rally to $1200 an ounce, a level last seen in June. |
| Updated at 6.52am BST | |
| 5.14am BST05:14 | |
| ... and copper. | ... and copper. |
| Updated at 5.22am BST | |
| 5.12am BST05:12 | |
| 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 6.52am BST | |
| 5.09am BST05:09 | |
| 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 US72.55 cents, 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 US72.55 cents, 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 6.51am BST | |
| 5.02am BST05:02 | |
| Updated at 5.05am BST | |
| 5.00am BST05:00 | |
| 4.57am BST04:57 | |
| Nikkei in Japan now down 4.25% | Nikkei in Japan now down 4.25% |
| Updated at 5.05am BST | |
| 4.52am BST04:52 | |
| 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 weakening demand from the world’s second biggest economy had created massive oversupply. | Away from the markets – but still with China – and the Australian steel producer BlueScope says it might have to shed 500 jobs because weakening demand from the world’s second biggest economy had created massive oversupply. |
| 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”. |
| The chief executive, Paul O’Malley, said demand in China had grown nearly six-fold in 15 years but had recently plateaued, moving the country’s producers to treble exports on 2010-14 levels. He said prices had fallen 46% in that time and a third of global capacity was sitting unused. | The chief executive, Paul O’Malley, said demand in China had grown nearly six-fold in 15 years but had recently plateaued, moving the country’s producers to treble exports on 2010-14 levels. He said prices had fallen 46% 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. |
| Updated at 6.50am BST | |
| 4.47am BST04:47 | |
| 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 ... 400m people still have to be urbanised. | A bet against China is the only guarantee of loss I’ve seen for a long time ... 400m 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. |
| Updated at 6.49am BST | |
| 4.35am BST04:35 | |
| 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 4.43am BST | |
| 4.27am BST04:27 | |
| 4.26am BST04:26 | |
| 4.23am BST04:23 | |
| 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. |
| Updated at 6.47am BST | |
| 4.20am BST04:20 | |
| 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. |
| Updated at 6.47am BST | |
| 4.06am BST04:06 | |
| '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. |
| Updated at 6.46am BST | |
| 4.04am BST04:04 | |
| 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 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 down 7.92%. |
| Updated at 6.45am BST | |
| 3.53am BST03:53 | |
| 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 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 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 6.45am BST | |
| 3.46am BST03:46 | |
| 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. |
| Updated at 6.44am BST | |
| 3.36am BST03:36 | |
| 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. |
| Updated at 6.42am BST |