Here's the way the WSJ described the action.
Shares in most of Asia traded lower Monday, with Australia and Japan flirting with bear market territory as anxieties grew about China weakness and fresh lows in oil.
The S&P/ ASX 200 was down 0.8% at 4853.30, down 19% from its April peak. The Nikkei Stock Average was last off 1.6% at 16,887.75, down 18% from their June peak. Benchmarks enter a bear market when they fall 20% or more from a recent high.
The Shanghai Composite Index was trading near flat after opening down 0.4% at 2891.17. It fell into bear-market territory Friday. The Hang Seng Index, which has stayed in a bear market since August, was 1.2%. South Korea’s Kospi fell 0.3%.
A global rout deepened in Asia amid concerns about China’s slowing economy and falling commodity prices. Weak U.S. retail sales data released Friday also raised concerns about the strength of the U.S. economy.
“A lot of focus is on [China’s central bank] and their ability to stabilize markets,” said Drew Forman, co-head of trading at Macro Risk Advisors. “I wouldn’t say people are coming into buy this market” yet.
We've written a lot about stabilization or the perception of it. That's what investors are looking for, at least the perception of stabilization. And they're not getting it in two areas that count right now, oil and China, two areas that snuck up on them because of their shortsighted fascination with government rhetoric.
In some ways it's one of those be careful what you wish for sagas when one does not stop to think it through, oil producing counties to handle budget gaps need to sell off assets and they appear to be doing that around the globe., putting further pressure on markets.
Commodity based currencies are taking the hit, particularly the Canadian loonie. We noted before the inflation Canadians now face at the super market. Betting against the yuan seems to be the latest trade de jour with some estimates it will by year end fall to 7 to the dollar.
In some ways it's one of those be careful what you wish for sagas when one does not stop to think it through, oil producing counties to handle budget gaps need to sell off assets and they appear to be doing that around the globe., putting further pressure on markets.
Commodity based currencies are taking the hit, particularly the Canadian loonie. We noted before the inflation Canadians now face at the super market. Betting against the yuan seems to be the latest trade de jour with some estimates it will by year end fall to 7 to the dollar.
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