Employees of the Tokyo Stock Exchange (TSE) work at the bourse in Tokyo August 26, 2015. Reuters/Yuya Shino
Asian shares skidded to 3-1/2-year lows and the dollar sagged on Tuesday, pulled down by sharp losses on Wall Street after weak Chinese data rekindled worries about its fragile economy.
Commodities struggled after fears of weaker demand pushed them to multi-year lows overnight. Adding to the gloom, commodity trader Glencore’s (0805.HK) Hong Kong-listed shares were around 28-percent lower on Tuesday, after its London-listed stock plunged on debt worries a day earlier..
European markets aren’t expected to be spared the selloff either. Financial spreadbetters are predicting Britain’s FTSE 100 .FTSE would open down by as much as 0.8 percent, Germany’s DAX .GDAXI 0.6 percent, and France’s CACM 40 .FCHI 1 percent.
“Investors are worried about a sharp slowdown in China … but the biggest risk is a global recession, not just a China issue,” said Steven Leung, a director at UOB Kay Hian in Hong Kong.
“If you look at Japan … its economy is in bad shape. And economic situation is not good in Europe, either.”
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slumped 2.3 percent, touching its lowest levels since June 2012 and extending early declines after Chinese shares opened lower.
Japan’s Nikkei stock index .N225 tumbled to 8-months, ending down 4.1 percent.