Asian markets lower following rout on Wall Street

THE QUOTE: “With worries about global growth likely to linger we could still see more downside in share markets in the short term”, said Shane Oliver of AMP Capital. Australia’s dollar was up 0.7% against the greenback, the South Korean won added 0.5% and the Malaysian ringgit gained 0.4%.

Pedestrians walk past a screen showing movements for the Tokyo Stock Exchange in Tokyo on Tuesday. Asian shares skidded lower Monday as investors looked ahead to Chinese economic growth figures. The Shanghai Composite Index rebounded by 3.22 percent, or 93.90 points at 3,007.74 points at the close.

Analysts at JP Morgan said that oil-producing countries will need to sell large quantities of stocks and bonds this year to cover the shortfall in their budgets resulting from the slump in oil prices. US markets were closed for a public holiday Monday. Other regional markets were mixed, gaining in Taiwan, Singapore, Thailand and New Zealand, while falling in Indonesia and the Philippines.

Growth of 6.9 percent for 2015 as a whole was the slowest in a quarter of a century, while monthly readings on industrial output and retail sales were weaker than expectations.

The MSCI Emerging Markets Index climbed 1.6 percent to 714.46 at 9:04 a.m.in London.

“This year, export and consumption could remain weak”.

Germany’s DAX, which had opened 1.2 percent higher, declined over the course of the day to end 0.3 percent lower at 9,521.85. But recent volatility in Chinese markets is overshadowing those trends of stabilization in China’s growth picture.

Italian equities moved lower led by concern about the country’s banks.

Energy firms were among the big losers, with CNOOC in Hong Kong down 4.5 percent and PetroChina shedding 2.1 percent.

The sharp slowdown in China has sent shockwaves through markets from Asia to the Americas over the past six months, in a rout that has wiped trillions off valuations and fuelled fears of another global economic crisis. Prices continued to call in Asia hours, with Brent crude off 1.2% at $28.60 per barrel.

CURRENCIES: The U.S. dollar rose to 117.62 yen from 117.50 yen in the previous trading day. The euro rose to $1.0893 from $1.0885.

Saudi Arabian shares fell 5.4 per cent on Sunday, hitting a five-year low, as Riyadh could be pressured into more spending cuts to reduce the red ink, slowing economic growth further and conceivably threatening a recession if oil prices stay at current levels.

The spot yuan was at 6.5793, little changed from Monday’s close, but offshore it weakened more than 100 pips during the morning to 6.5975, almost 0.3 percent adrift from the onshore rate.