World Markets Lose Ground amid ‘Black Monday’ for Shanghai Index

AP Photo
The Associated Press

From Simon Denyer writing at the Washington Post:

China’s state media called it “Black Monday” as the Chinese stock market recorded its biggest slump in eight years and jitters spread throughout Asia and the rest of the world.

The collapse in Chinese stocks was fueled by mounting concerns about an economic slowdown here, but it has fed into a wider sell-off in emerging markets. Asian shares hit a three-year low Monday, and the nervousness appeared likely to spread to Wall Street after last week’s sharp falls there.

“A lot of questions are being asked by investors,” said Chris Weston, chief markets strategist at IG in Melbourne. “This is a confidence game, and when you don’t have confidence, you press the sell button.”

Shanghai’s main share index closed down 8.49 percent, but trading in hundreds of shares was suspended after they lost 10 percent.

The Composite Index has fallen by nearly 40 percent since June, after rising more than 140 percent last year. Tokyo’s Nikkei-225 index recorded its biggest drop in more than two years, falling 4.6 percent to a six-month low, while the MSCI index of Asia-Pacific shares outside Japan sank 5.1 percent to a three-year low.

Read the rest of the story at the Washington Post.