SINGAPORE: The Singapore market opened Friday in a bearish mood, following an early slump in other regional markets, as fears took hold of a China-led deceleration in global growth.
The benchmark Straits Times Index lost around 1.7 per cent within five minutes after market opening, dropping below the psychologically crucial 3,000-mark.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.5 percent. Japan’s Nikkei lost 1.8 percent and South Korea’s Kospi shed 2.2 percent.
Eyes remained fixed on how the Chinese equity markets fare later in the session. The recent plunge signified a weakening Chinese economy in the view of global investors, raising prospects of slower inflation, weaker demand for commodities and a currency war after Beijing devalued the yuan last week.
The August Caixin/Markit manufacturing index due at 0145 GMT will offer the latest glimpse into the health of the world’s second largest economy. Weaker-than-expected July data had dashed hopes that the economy was stabilizing and economists polled by Reuters expect another contraction in factory activity in August.
Shanghai stocks have already lost roughly eight percent this week, pushing the S&P 500 to a six-month low overnight.
