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| Asia-Pacific share market plunge triggered by jitters over China | Asia-Pacific share market plunge triggered by jitters over China |
| (34 minutes later) | |
| 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. |
| Related: Global stocks sell-off deepens as panic grips markets - live | |
| In Australia the benchmark S&P/ASX 200 and the All Ordinaries indices fell more than 2.4% in the first 20 minutes of trade on Monday. Banks and mining companies were among the worst hit. | In Australia the benchmark S&P/ASX 200 and the All Ordinaries indices fell more than 2.4% in the first 20 minutes of trade on Monday. Banks and mining companies were among the worst hit. |
| Share prices were down in early trading elsewhere in Asia: Japan’s Nikkei briefly slumped to a five-month low; South Korea’s Kospi index shed 0.5%; the MSCI broader index of Asia-Pacific shares, not including those in Japan, lost 0.9%. | Share prices were down in early trading elsewhere in Asia: Japan’s Nikkei briefly slumped to a five-month low; South Korea’s Kospi index shed 0.5%; the MSCI broader index of Asia-Pacific shares, not including those in Japan, lost 0.9%. |
| The trading day was barely under way when the Nikkei benchmark index briefly fell more than 500 points from Friday. | The trading day was barely under way when the Nikkei benchmark index briefly fell more than 500 points from Friday. |
| In the first 15 minutes of trading on Monday, the Nikkei was down 481.63 points from the end of last week to 18,954. | In the first 15 minutes of trading on Monday, the Nikkei was down 481.63 points from the end of last week to 18,954. |
| After five weeks of losses, the Asia-Pacific region braced for another tumultuous start to the week, with investor concern centred on China. | After five weeks of losses, the Asia-Pacific region braced for another tumultuous start to the week, with investor concern centred on China. |
| Fears that China could drag down the global economy sparked the steepest one-day drop in nearly four years on Wall Street on Friday, and left the Dow Industrial Index more than 10% below its May record. | Fears that China could drag down the global economy sparked the steepest one-day drop in nearly four years on Wall Street on Friday, and left the Dow Industrial Index more than 10% below its May record. |
| Markets have been reeling since China’s shock currency devaluation almost two weeks ago. | Markets have been reeling since China’s shock currency devaluation almost two weeks ago. |
| “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. | “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. |
| Chinese shares fell 11% last week after manufacturing activity fell to its lowest level since 2009. All eyes are now on how Chinese stocks perform later on Monday. | Chinese shares fell 11% last week after manufacturing activity fell to its lowest level since 2009. All eyes are now on how Chinese stocks perform later on Monday. |
| “Things are probably going to get worse before they get better,” Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors, told Bloomberg. | “Things are probably going to get worse before they get better,” Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors, told Bloomberg. |
| “You really need rate cuts and more policy easing in China. In the meantime, things can get worse.” | “You really need rate cuts and more policy easing in China. In the meantime, things can get worse.” |
| Related: Australian share market tumbles at start of trade after global markets fall | |
| But Craig James, chief economist at CommSec, warned against overreacting to China’s woes and to growing uncertainty over Greece’s ability to implement austerity measures and reforms agreed as part of its recent bailout package. | But Craig James, chief economist at CommSec, warned against overreacting to China’s woes and to growing uncertainty over Greece’s ability to implement austerity measures and reforms agreed as part of its recent bailout package. |
| “At present, we would view the global share market correction as a correction we had to have – a situation that will be beneficial in injecting more value into markets,” he said. | “At present, we would view the global share market correction as a correction we had to have – a situation that will be beneficial in injecting more value into markets,” he said. |
| “There are clearly risks, but the data indicates that US and European economies continue to recover, lower oil prices will serve to boost consumer and business spending, and Chinese authorities are trying a range a measures to maintain momentum in their economy.” | “There are clearly risks, but the data indicates that US and European economies continue to recover, lower oil prices will serve to boost consumer and business spending, and Chinese authorities are trying a range a measures to maintain momentum in their economy.” |