Asian markets collapse as Shanghai tumbles 8.5%

<p>Investors are worried about a slowdown in the world’s second-largest economy.</p>

Asian stocks tumbled today (August 24th) after China's Shanghai composite Index fell 8.5 per cent to 3,209.91 over ongoing fears of a slowdown in the world's second-largest economy. The benchmark has now lost all of its gains for 2015.

Chinese shares fell 11 per cent last week after manufacturing activity fell to its lowest level since 2009.

"It is a key moment for China, with the equity market in free fall, the banking system increasingly starved of liquidity, rising capital outflows, and a rapidly slowing economy," IG's market analyst Angus Nicholson wrote in a note.

"The target is now looking overly ambitious and the most sensible way forward would seemingly involve further currency devaluation, further reserve requirement ratio cuts and fiscal stimulus," he added.

Japan's Nikkei 225 Index tumbled 4.61 per cent to 18,540.68, Hong Kong's Hang Seng Index was down 5.17 per cent to 21,251.57 and Australia's ASX 200 dipped four per cent to 5,001.28. South Korea's KOSPI Index was down 2.4 per cent to 1,829.81.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.