Chinese stocks tumble again while other Asian indexes rise

<p>The Shanghai Composite Index fell 7.6 per cent today.</p>

Chinese stocks tumbled for a second day today (August 25th) over worries about the health of the country's economy.

The Shanghai Composite Index fell 7.6 per cent today, after losing 8.5 per cent yesterday, after data revealed manufacturing activity dropped to its lowest level since 2009 and exports fell by 8.3 per cent in July.

The crash comes despite China's announcement on Sunday that it plans to let its main state pension fund invest in the stock market for the first time. It has since announced no new direct measures to stop the market declines. 

According to IG's market strategist Bernard Aw, there is no easy explanation for the meltdown in the mainland markets, which indicates that significant downside risks remain.

Meanwhile, several Asian markets bounced back after a day of global sell-off dubbed "Black Monday" by several media.

Hong Kong's Hang Seng was up 0.7 per cent to 21,404.96 and Sydney's S&P ASX 200 advanced 2.7 per cent to 5137.25. Seoul's Kospi closed up to 1,846.63. However, Tokyo's Nikkei 225 index tumbled four per cent to 17806.70, pressured by selling among European investors, according to Reuters. 

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