Arab Today, arab today asia stocks plunge as china woes hit resource firms
Last Updated : GMT 06:17:23
Arab Today, arab today
Arab Today, arab today

Asia stocks plunge as China woes hit resource firms

Arab Today, arab today

Arab Today, arab today Asia stocks plunge as China woes hit resource firms

Tokyo stocks
Hong Kong - AFP

Resources firms led a sell-off in Asian markets on Tuesday following painful losses across Europe and New York as fears about the impact of China's slowing growth on the global economy burst back into view.

In a fierce rush to safety the yen and gold rallied and higher risk emerging market currencies took another hit ahead of the release of key US jobs data that could play a big part in the Federal Reserve's decision on when to hike interest rates.

Trading floors around the planet have witnessed extreme volatility since mid-August, when China devalued its yuan currency, fanning fears about the state of the world's number two economy and crucial driver of global growth.

"The slowdown in China is spreading to other Asian economies, Brazil and Australia, and weakness in emerging countries could echo throughout the overall world economy," Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.

"We still don't know when market fears will end about China's slowdown, and because of this investors are turning to cash and safe assets."
China has been suffering a painful slowdown in growth for several months and is expected to see its worst performance this year in a quarter of a century.

Last week already weak confidence was rattled by news that a gauge of factory activity in the country came in at its lowest level for six-and-a-half years in September.

The latest panic comes after China said its key industrial companies saw profits fall 8.8 percent in August -- hit by last month's shock devaluation, weak demand and plunging stocks.

The news hammered London-listed mining giant Glencore, which plunged 27.5 percent on Tuesday after online brokerage Investec warned about the impact of soft commodity prices on the group as China's struggles hit demand for raw materials.

The firm has lost about three quarters of its value this year as commodity prices -- including copper, iron ore and oil -- sit at multi-year lows.

- Rush to safety -

On Tuesday resource-reliant firms tumbled. In Sydney BHP Billiton plunged more than six percent and Rio Tinto shed five percent, while Origin Energy and Santos gave up almost seven percent each.

In Tokyo oil firm JX Holdings lost 4.5 percent and Kubota -- which makes tractors and heavy equipment -- fell 5.88 percent. Industrial robot maker Fanuc, which has close links to China, was down 2.38 percent.

The losses dragged all Asia's bourses lower. Tokyo tumbled 3.21 percent, Hong Kong lost 3.42 percent, Sydney shed 2.69 percent and Shanghai was 1.48 percent lower. Singapore, Wellington and Manila were all down more than one percent.

Markets in New York and Europe were equally as sideswiped. The Dow plunged 1.92 percent, the S&P 500 lost 2.57 percent and the Nasdaq tumbled 3.04 percent. Earlier in the day London, Frankfurt and Paris all lost more than two percent.

Bullion, another go-to safe haven, added 0.10 percent to $1,132.72.

Foreign exchange dealers also fled to assets considered safe in times of turmoil. The dollar fell to 119.61 yen from 119.93 yen Monday in New York, while the euro slipped to 134.62 yen against 134.83 yen.

The greenback extended gains on other regional currencies. The South Korean won fell 0.18 percent against the US unit, the Thai baht shed 0.25 percent and Indonesia's rupiah was 0.41 percent lower.

Malaysia's ringgit was almost one percent lower, the Taiwan dollar shed 0.46 percent and the Singapore dollar eased 0.25 percent.

The dollar is earning extra cache as investors prepare for an expected rate hike by the end of the year, with Friday's jobs data in focus. A strong reading will put fresh pressure on the Fed to move, putting pressure on emerging economies as investors withdraw their cash to seek better returns in the US.

Oil prices edged up, however, after losing around 2.5 percent Monday.

US benchmark West Texas Intermediate rose 0.16 percent to $44.50 and Brent was up 0.13 percent at $47.40.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today asia stocks plunge as china woes hit resource firms Arab Today, arab today asia stocks plunge as china woes hit resource firms

 



Arab Today, arab today
Arab Today, arab today US, Britain ban laptops on flights

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Hezbollah commander killed by own men

GMT 07:43 2017 Wednesday ,22 March

Hezbollah commander killed by own men
Arab Today, arab today Tunisian media host praises her new experience

GMT 12:35 2017 Wednesday ,15 March

Tunisian media host praises her new experience
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemeni official warns education is under threat

GMT 12:03 2017 Tuesday ,14 March

Yemeni official warns education is under threat
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Palestinian police wage war

GMT 07:53 2017 Friday ,17 March

Palestinian police wage war
Arab Today, arab today Donia Abdel Aziz participates in "Game of Silence"

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"
Arab Today, arab today Mexico threatens to ditch US corn imports

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 07:39 2017 Monday ,20 March

Dalia Mustafa believes in the presence of ghosts

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection

GMT 16:41 2017 Monday ,20 March

Preserving the memory of glaciers

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 14:17 2017 Monday ,20 March

Cholesterol-slashing drug not impair brain

GMT 17:08 2017 Saturday ,18 March

Reveals secrets of tourism flights to space

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 22:39 2017 Thursday ,09 March

Zuhair Murad presents his new collection "Resorts"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday