Markets across Asia plummeted Tuesday, with commodities and related sectors bearing the brunt of worries that China’s slowdown is spilling into global markets
The Nikkei 225 index collapsed 714.23 points, or 4.1%, to 16,930.84, giving up gains for the year and hitting an eight-month low.
In Hong Kong, the Hang Seng Index returned from holiday to jettison 629.22 points, or 3%, to 20,556.60
Two factors that have pressured markets—signs of a deteriorating Chinese economy and the uncertain timing of a rise in U.S. interest rates—have sparked selling in recent weeks. But heavy losses in mining-and-trading firm Glencore PLC on Monday put the spotlight back on China’s slackening demand for commodities. China is one of the world’s biggest consumers of metals and other raw materials.
The firm’s Hong Kong-listed unit was down 29%, compared with the Hang Seng Index’s decline of 3%. That market was catching up with the region’s losses Monday, when it was closed for holiday.
The ripple effects of Glencore’s decline reached energy and mining stocks in other regions, with Singapore-listed commodities trader Noble Group Ltd. down 10%, its lowest since 2008. Noble Group’s share price has fallen as much as 66% this year after accusations of accounting irregularities—which Noble denies—and has failed to pick up despite the firm’s largest shareholders staying put.
In Hong Kong, all three of China’s major oil producers dropped more than 6%: PetroChina Co China Petroleum and Chemical Corp. known as Sinopec, and Cnooc Ltd. China Shenhua Energy Co. China’s biggest coal producer, fell 5.3%.
Concerns about anemic economic growth also weakened regional currencies. Singapore’s dollar fell to its weakest in six years, as analysts said the city-state’s economy could be on the brink of a recession.
Australia’s dollar was down as much as 0.78% against the U.S. dollar.
Taiwan’s market was closed because of Typhoon Dujuan. South Korea’s market was closed for holiday.
Tumbling resources stocks dragged Australia’s S&P ASX 200 to a two-year low. The benchmark fell 3.8%, its biggest one-day move in a little over a month.
CHINA
The CSI 300 in Shanghai lost 63.9 points, or 2%, to 3,178.85
A series of weak data points from China, including industrial profits released Monday, also give little cause for optimism about a recovery in prices and demand from the world’s number-two economy. Later this week, China is expected to release its September reading on manufacturing activity.
In other markets
The CSI 300 in Shanghai lost 63.9 points, or 2%, to 3,178.85
In Singapore, the Straits Times Index docked 3.98 points, or 0.1%, to 2,787.91
The NZX 50 ditched 86.71 points, or 1.5%, to 5,612.42
The ASX 200 Index dropped 195.06 points, or 3.8%, to 4,918.43
