Economic slump in China continues to affect the global market, especially in Asia, where the cost of insuring debt is increasing day by day. The Nikkei 225 Index, the benchmark index of Japan was down 3.2%, its lowest in the last eight months. The Shanghai Composite fell by 1.1% to 3,065.38 while the Hang Seng Index of Hong Kong fell by 3.2% to 20,504.23. Taiwanese and South Korean markets were closed for the day.
Focus is on losses suffered by Glencore Plc., the largest copper supplier in the world. Rising fed rates in US, Chinese economic slowdown and accumulated debts have united to bring down this giant, which has steadily been losing value along with recent crash in commodity prices. Shares of other leading companies in related sectors, Noble Group Ltd, Mitsui and Co. and BHP Billiton Ltd have been dragged down with Glencore.
Investors are trying to cut their losses are they wait for manufacturing surveys, due Thursday, for more information on the extent of the slowdown in China.
“I’m expecting some continued turbulence in the market,” John Carey, a fund manager at Pioneer Investment Management Inc. in Boston, which oversees $244.1 billion globally, told Bloomberg TV. “In the near term, one needs to be careful. The world economy is soft in places and there are risks out there.”