China stocks suffered their sharpest daily percentage decline since 2007, as worries mount that authorities are pulling back on measures to prop up the market.
Elsewhere, other Asian markets declined more modestly, pressured by disappointing earnings results overseas
In Japan, the Nikkei 225 index plummeted 194.41 points, or 1%, to 20,350.10
In Hong Kong, the Hang Seng Index staggered 776.55, or 3.1%, to 24,351.96
Commodity prices had remained under pressure heading into the weekend, with copper sinking to a six-year low, gold falling to a five-year low, and U.S. oil prices pushing further below $50 U.S. a barrel.
Asian currencies continued to feel the pressure of a strong U.S. dollar amid expectations for U.S. interest rates to rise later this year, with some hitting fresh multi-year lows.
The South Korean won fell to a fresh three-year low against the U.S. dollar. It traded as high as 1,173.60 against the U.S. dollar, from its Friday close of 1,167.35.
In Hong Kong, brokerage house Central China Securities is raising 2.53 billion Hong Kong dollars ($326 million U.S.) via a share placement in a bid to expand its businesses. The firm said Sunday it has agreed to sell 592.12 million new shares at HK$4.28 each to independent investors, representing about 18.4% of its enlarged share capital. Shares slid 11%.
Some 75% of the net proceeds are expected to expand the firm’s margin financing and securities lending business, with the rest to be used for other investment and to supplement its liquidity.
CHINA
In China, the CSI 300 subtracted 357.19 points, or 8.6%, to 3,819.09
China’s main index is up 6% from its recent low on July 8, but still off 28% from its high in June.
Analysts say the selling came as investors fear the government is curbing its buying of blue-chip stocks—and could even be testing whether the market can support itself.
Earlier this month, 21 brokerages pledged to support the Shanghai index as long as it stayed below the 4,500 level. Before Monday, China’s main stock market had rallied for three-straight weeks.
In other markets
Singapore’s Straits Times Index dipped 39.23 points, or 1.2%, to 3,313.42
In Taiwan, the Taiex index plummeted 211.18 points, or 2.4%, to 8,556.68
In Korea, the Kospi index moved 7.15 points, or 0.4%, to 2,038.81
The NZX 50 lost 22.12 points, or 0.4%, to 5,872.06
The ASX 200 Index regained 23.78 points, or 0.4%, to 5,589.89
