China’s stock market brushed a new low since the depth of the summer selloff that wiped out roughly a third of its value, despite massive intervention from Beijing.
In Japan, the Nikkei 225 index tumbled 597.69 points, or 3%, to 19.435.83, its lowest level in six weeks
In Hong Kong, the Hang Seng Index collapsed 347.85 points, or 1.5%, to 22,409.62
Doubts about the health of China’s economy, an anchor of regional growth, has sent Asia’s currencies into a tailspin.
The Australian dollar is down 0.4% at $0.7305 and South Korea’s won is down 0.8% at 1,193 per dollar.
Worries about China’s decision last week to devalue its yuan has intensified investor concerns that weakness in the world’s second-largest economy will crimp global growth, particularly among China’s northern Asian competitors in the exports market.
Benchmarks in Taiwan and Hong Kong are flirting with bear-market territory, defined as a 20% drop from a recent peak. Hong Kong shares are headed for the worst weekly performance since 2011.
Currencies in countries that compete with or send exports to China continue to tumble.
The Japanese yen strengthened to 122.86 per U.S. dollar compared with 123.45 at the close of Asian trade Thursday.
Investors also are heading to Asian government bonds, sending yields lower. Yields on benchmark 10-year Australian government bonds fell 0.08 percentage points to 2.59%.
China’s 10-year government bond yields fell 0.09 percentage points to 3.52% and Japan’s fell slightly to 0.35%. Yields fall when bond prices rise.
CHINA
In China, the CSI 300 erased 171.92 points, or 4.6%, to 3,589.54,
The selling in June and July prompted the government to step in with a range of rescue measures, from a stabilization fund that has spent tens of billions of dollars to prop up the market, to the banning of share sales by state-owned firms.
China’s fitful stocks and currency devaluation has unsettled markets across Asia, the U.S. and Europe, pressured commodities and sent investors to safer assets like gold and U.S. Treasury bonds.
Global worries are now increasingly complicating the U.S.’s plans to raise interest rates later this year. Some Fed officials pointed to slowing growth in China’s once-booming economy as a reason for caution.
On Friday, the People’s Bank of China guided the onshore Chinese yuan sharply stronger, setting the midpoint for its currency at 6.3864 against the U.S. dollar compared with 6.3915 a day earlier. The currency can trade 2% above or below that level. The yuan is currently trading at 6.3983.
Global jitters are sending investors to assets perceived to be safer. Gold notched its best day in nearly four months Thursday on anticipation that the Federal Reserve will stand pat on interest rates and amid volatile currency moves.
China’s cooling factory activity is likely to heap more pressure on prices of commodities, which have plumbed new lows in recent weeks, particularly oil and industrial metals like copper and aluminum.
In other markets
In Korea, the Kospi index shed 38.77 points, or 1.3%, to 1,876.07
In Singapore, the Straits Times Index lost 38.48 points, or 2%, to 2,971.01
In Taiwan, the Taiex index dumped 242.89 points, or 3%, to 7,786.92
The NZX 50 regained 8.73 points, or 0.2%, to 5,751.19
The ASX 200 Index moved lower 73.98 points, or 1.4%, to 5,214.60
