Monday brought a major rout in Asia, which saw Chinese equities surrender all their gains for 2015.
In Japan, the Nikkei 225 index tumbled 895.15 points, or 4.6%, to 18,540.68
In Hong Kong, the Hang Seng Index was in freefall, losing 1,158.05 points, or 5.2%, to 21,251.57
Stock markets slid across Asia and a number of regional currencies fell to fresh mult-year lows.
The regional MSCI Asia Pacific stock index was down 16% from its April peak, which was its highest since the global financial crisis, in U.S. dollar terms as of Friday. It is now trading at its lowest level since February 2014.
CHINA
In China, the CSI 300 erased 314 points, or 8.8%, to 3,275.53,
Many investors expected the People’s Bank of China would take some action over the weekend to support the financial system. In the absence of any move, a brutal bout of selling overtook markets.
At the heart of the selloff is the concern that the once-highflying Chinese economy may be slowing down dramatically, which has triggered steep losses in global stock markets, commodities and emerging markets.
China’s surprise move to devalue its yuan two weeks ago — which could make its exports more competitive — and a string of weak data signal the economy may be feebler than expected, despite a campaign to rev up growth including interest rate cuts and measures to boost lending.
Some 1,968 stocks fell by the maximum 10% allowed by regulators on the Shanghai and Shenzhen markets combined, or 68% of all stocks in China.
Among the hardest hit stocks in China were brokerages, which helped spur a yearlong rally by funding stock buying on borrowed money. Citic Securities Co., one of China’s biggest, limited down Monday and has fallen more than 50% year to date.
In other markets
In Korea, the Kospi index shed 46.26 points, or 2.5%, to 1,829.81
In Singapore, the Straits Times Index doffed 127.62 points, or 4.3%, to 2,843.39
In Taiwan, the Taiex index dumped 376.58 points, or 4.8%, to 7,410.34
The NZX 50 faded 143.88 points, or 2.5%, to 5,607.31
The ASX 200 Index moved lower 213.32 points, or 4.1%, to 5,001.28
