Any hope that additional monetary policy easing from China over the weekend would be enough to calm Asian markets in the wake of heightened Greek fears has, for the moment, failed to materialise.
Chinese stocks, after jumping between gains and losses upon the resumption of trade, have been smashed yet again. At the lunchtime break, the benchmark Shanghai Composite has lost an additional 3.75%, taking its losses since hitting a multi-year high on June 12 to 22%. The index is now in an official bear market.
Elsewhere the CSI 300 has fallen 3.36% while the tech heavy ChiNext index has slumped 8.05%, taking its total losses since hitting a record high on June 5 this year to 33%.
Having initially bounced off the lows upon the resumption of trade in China, regional stock markets remain deep in the red. The Nikkei in Tokyo is off 2.05%, the KOSPI in South Korea by 1.45%, Australia’s ASX 200 by 2.06% while the Hang Seng in Hong Kong by an additional 2.37%. Indian stocks, having just resumed trade following the weekend break, are also off 1.6%.
US stock futures are down 1.33% while those for Germany’s DAX are still off by around 4%.
Reflective of the risk averse moves seen in regional stock markets spot gold is higher by 0.7% while WTI crude futures are lower by 1.5%.
In Forex markets the Euro continues to wallow nears loses struck earlier in the session. Against the US dollar the common currency is down by 1.33% while against the yen, another safe haven favourite, it’s slid 2.15%.
Elsewhere the moves are more limited, although the US dollar, Japanese yen and Swiss franc continue to be well supported.
US, Japanese and Australian government bond futures are also well supported.