U.S. stocks fall sharply on China growth worries

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In Tokyo, oil firm JX Holdings lost 4.32 per cent and Kubota – which makes tractors and heavy equipment – fell 7 per cent. Industrial robot maker Fanuc, which has close links to China, was down 3.8 per cent.

Resources firms led a sell-off in Asian markets 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.

ASIA’S DAY: Japan’s benchmark Nikkei 225 dropped 4.1 percent to 16,930.84 and Australia’s S&P/ASX 200 lost 3.8 percent to 4,918.40. The Nasdaq composite slumped 91 points, or 2 per cent, to 4,593.

The euro edged up about 0.2% to $1.1264, pulling further away from a low of $1.1116 touched on Friday.

The Fed remains on course to pull the trigger and when it finally does deliver its first hike since 2006, analysts say the focus will shift to how quickly it will normalise policy. In Sydney BHP Billiton plunged 6.65 percent and Rio Tinto shed 4.57 percent, while Origin Energy plunged 10.43 percent and Santos gave up more than 9 percent.

VW LOWER AGAIN: Volkswagen shares were down 6.5 percent at 108 euros as German prosecutors opened an investigation against the company’s former CEO, Martin Winterkorn, to establish what his role was in the emissions-rigging scandal. Spot gold XAU= was little changed at $1,144.45 an ounce after dropping 0.7 percent on Friday. USA stock futures also pointed to a weak opening on Wall Street.

US stocks are sharply lower as traders worry about weakness in China’s economy.

On the economic front, an indicator which measures confidence among Japan’s small and medium-sized enterprises, increased unexpectedly in September, figures released by the Shoko Chukin Bank showed with the corresponding index rising by 0.2 percentage points to 49.0 from 48.8 in the previous month.

Yahoo! said it will go ahead despite a risk of a multi-billion dollar tax bill after the U.S. Internal Revenue Service denied its request to considered tax free deal.

The dollar fetched 120.30 yen JPY after edging up to a two-week high of 121.24 on Friday as U.S. Treasury yields rose on the strong U.S. GDP numbers and expectations of a Fed hike in 2015. Wall Street looked set for gains, with futures for the Dow Jones industrial average and the Standard & Poor’s 500 up 0.3 percent.

The firm’s Hong Kong-listed (GLEN.LN) unit was down 29%, compared with the Hang Seng Index’s decline of 3%.

While markets in Hong Kong resume trading Tuesday after a holiday, South Korea is closed until Wednesday.

ENERGY: Benchmark crude rose 39 cents to $44.82 a barrel in electronic trading on the New York Mercantile Exchange.

Axel Springer SE dropped 2.1% to €51.35 after the Germany-based media company agreed to acquire an 88% stake in the U.S.-based business and financial news website Business Insider for about €306 million or $343 million. Brent Crude, a benchmark for worldwide oils, was up 53 cents to $47.87.

The greenback fell to 119.55 yen from 119.93 yen Monday in New York, while the euro slipped to 134.61 yen against 134.83 yen.

 

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