For a second consecutive session Chinese stocks have been hammered, and like previous days there was no last-minute rally to stem the losses.
The benchmark Shanghai Composite index was plundered, falling 3.5%. At one point it looked like the index would close below the 3,000 point level, something it’s only done twice since December 2014. Combined with Monday’s decline, the index has now fallen 6.76% since last Friday’s close.
Fitting with the ugly headline decline, all sectors finished deep in negative territory with the largest losses seen in the materials, industrials and IT sectors.
Like the benchmark index, losses were seen across all mainland bourses, particularly in small-cap stocks. The SSE 50, containing the largest firms listed in Shanghai, slumped 2.47% while the CSI 500, Shenzhen Composite and tech-heavy ChiNext indices all posted losses in excess of 5%.
The carnage in Chinese stocks was replicated across the region, with the exception of Japanese and South Korean markets.
Australia’s ASX 200 index closed down 1.53% while stocks in Singapore, Hong Kong and Taiwan fell by between 0.5% to 1%.
The exception was the Nikkei in Japan and South Korean KOSPI, which added 0.3% apiece. While it finished in the black, the former was up as much as 2% earlier in the day before renewed yen strength, largely as a result of the Bank of Japan leaving monetary policy unchanged in September, dragging the index lower in the latter parts of trade.
Reflective of the weakness in Chinese stocks, risk-orientated currencies were under pressure with the Australian and New Zealand dollars falling 0.3% respectively. As mentioned above, and reflective of souring investor sentiment, the USD/JPY slid to 119.76 having been as high as 120.65 in early Tuesday trade.
In commodity markets the price action was mixed with copper and crude futures posting modest gains while precious metals, along with iron ore futures finished lower.
The full regional scoreboard is found below.
- ASX 200 5018.40 , -78.07 , -1.53%
- Nikkei 225 18026.48 , 60.78 , 0.34%
- Shanghai Composite 3004.36 , -110.44 , -3.55%
- Hang Seng 21444.25 , -117.65 , -0.55%
- KOSPI 1937.56 , 6.10 , 0.32%
- Straits Times 2840.96 , -30.51 , -1.06%
- S&P 500 Futures 1951.75 , -2.25 , -0.12%
- USD/JPY 119.8 , -0.42 , -0.35%
- USD/CNY 6.3675 , 0.0011 , 0.02%
- AUD/USD 0.7117 , -0.0018 , -0.25%
- NZD/USD 0.6307 , -0.0017 , -0.27%
- AUD/JPY 85.26 , -0.52 , -0.61%
- EUR/USD 1.1291 , -0.0027 , -0.24%
- GBP/USD 1.5421 , -0.0003 , -0.02%
- USD INDEX 95.357 , 0.1110 , 0.12%
- Gold $1,107.51 , -$0.89 , -0.08%
- Silver $14.37 , -$0.04 , -0.28%
- WTI Futures $44.17 , $0.17 , 0.39%
- Copper Futures $2.427 , $0.01 0.52%
- Iron Ore Futures ¥392.00 , -¥13.50 , -3.33%
10-Year Bond Yields
- Australia 2.692%
- New Zealand 3.280%
- Japan 0.368%
- Germany 0.665%
- UK 1.865%
- US 2.178%
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