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Chinese stocks continue to tumble | Chinese stocks continue to tumble |
(35 minutes later) | |
Chinese stocks continued to fall, though elsewhere in Asia stocks returned to gains after global markets had been rocked by dramatic losses the previous day. | |
The mainland benchmark Shanghai Composite was down 3.2%, adding to Monday's dramatic 8.5% drop. | |
Overnight, stocks in Europe and the US had also seen sharp falls. | |
The worldwide sell-off was driven by fears that China's slowing growth might pull down economies around the globe. | |
Investors are worried that firms and countries which rely on high demand from China - the world's second largest economy and the second largest importer of both goods and commercial services - will be affected. | Investors are worried that firms and countries which rely on high demand from China - the world's second largest economy and the second largest importer of both goods and commercial services - will be affected. |
China's central bank devalued the country's currency, the yuan, two weeks ago, raising fresh concerns that a slowdown in the country's economy was worse than originally feared. | China's central bank devalued the country's currency, the yuan, two weeks ago, raising fresh concerns that a slowdown in the country's economy was worse than originally feared. |
Recoveries elsewhere in Asia | Recoveries elsewhere in Asia |
Elsewhere in Asia though, markets beat analysts' expectations, returning back to positive territory. | |
Hong Kong's Hang Seng was up by 2.6% while Australia's S&P ASX/200 rose by 2.2% and Japan's Nikkei 225 was 0.7% higher. | |
The gains came despite the losses in Europe and the US over night. | |
In volatile trading, Wall Street's Dow Jones fell 6%, then almost recovered its losses before closing 3.6% lower. | |
Earlier, London's FTSE 100 index closed down 4.6%, with major markets in France and Germany down by 5.5% and 4.96% respectively. | |
Andrew Walker: How the China share slump affects the rest of the world | Andrew Walker: How the China share slump affects the rest of the world |
Karishma Vaswani: China counts cost of Black Monday | Karishma Vaswani: China counts cost of Black Monday |
Robert Peston: Will China’s slowdown make us poorer? | Robert Peston: Will China’s slowdown make us poorer? |
Duncan Weldon: China share falls - why it's not 2008 | Duncan Weldon: China share falls - why it's not 2008 |