China woes
Asian stocks slumped to three-year lows on Monday as a slump in Chinese equities gathered pace with Shanghai slumping more than 8 per cent as concerns deepened about China's stalling economy which has rattled equity investors around the world.
China-linked shares tumbled in early trading as well with Hong Kong dipping 3.91%, Tokyo diving 3.09% , Seoul losing 1.88% and Sydney falling by 2.89%.
In addition, weak Chinese manufacturing data came in on Friday.
Over the weekend, China also allowed its $547-billion pension fund, the world's largest, to be invested in its volatile stock market.
Recently, China's central bank devalued its tightly controlled currency, causing market's biggest one-day loss in two decades. But as the world's second-largest economy continues to sputter, there are fears that China could be forced to devalue the yuan even more.
Crude oil price
Brent and US crude oil futures hit their fresh 6-1/2-year lows as investors continue to worry about weak demand as China's economy slows, amid a global supply surplus.
Rupee Fall
The
rupee fell to a two-year low and plunged by 66 paise to trade below Rs 66 level against the dollar for the first time in almost two years in opening trade on sustained capital outflows even as the US currency weakened overseas.
Sharp sell offs by foreign investors
Overseas investors have pulled out nearly Rs 2,000 crore from the
Indian stock markets since the beginning of August, amid concerns over Chinese economy coupled with sharp erosion in the value of rupee.
Wall Street's sharp plunge on Friday
On Friday, US markets recorded their steepest one-day drop since 2011. Weak Chinese manufacturing data, and another drop in China's stock market, rattled investors and led to Friday's tumble.
5 factors that led to the stock market crash on Monday - Business Today
