The Shanghai Stock Exchange Composite Index nose dived 6% on Tuesday as China’s Currency weakened against the dollar, while U.S. stock futures were lower.
Asian stocks dipped down as discouraging data from the U.S. and additional drops in oil prices and other commodities leading investors to be mindful about betting on risky asset classes.
The Shanghai Index ended 6.1 per cent at 3,749.12 points in its biggest daily decline since July 27, breaking a three-day winning streak.
Japan’s Nikkei 225 index was down by 0.3% while Hong Kong’s Hang Seng index lost 0.9%. The Shanghai Composite sunk by 6.2%, however, the cause of the dip wasn’t known immediately.
The Chinese current yuan was stable for about a week since it’s devaluation was done last week, but apprehensions about weak growth in China have pushed down the prices of commodities like oil, copper and other metals, hurting emerging markets that depend on natural resources.
U.S. stocks revived from a negative start to Monday’s session on following a weak data on production in the New York area.