China stocks lower as global selloff continues
Selloff has unnerved investors around the globe
BEIJING – China stocks opened sharply lower on Tuesday, extending a selloff that has unnerved investors around the globe.
The benchmark Shanghai Composite dropped 6% in the first few minutes of trading. Losses were sharper on China's smaller Shenzhen Composite, which shed 6.9% at the open.
The Shanghai Composite has now declined 42% from its June 12 peak, erasing all gains year to date.
In Japan, the Nikkei was trading 1.8% lower. After opening in the red, Australia's ASX All Ordinaries and Seoul's KOSPI Composite were both in positive territory.
Turbulence in Asia comes after a very rough Monday for U.S. stocks. After an unprecedented 1,000-point decline at the open on Monday, the Dow closed with a loss of nearly 600 points.
Three factors continue to weigh on markets:
1. Concerns that China's economy is slowing faster than analysts had anticipated.
2. Uncertainty over when the U.S. Federal Reserve will raise its benchmark interest rate.
3. The effect of exceedingly cheap oil -- crude is now trading below $40, its lowest point in more than six years.