U.S. stock indices fell on Monday amid concerns over China's economy and an imminent rate increase by the Federal Reserve.
The Dow Jones Industrial Average lost 114 points, or 0.7%, to 16,528. The S&P 500 fell 16 points, or 0.8%, to 1,972. The Nasdaq Composite dropped 52 points, or 1.1%, to 4,776. The indices ended August with losses of 6.6%, 6.3% and 6.9% respectively.
Data showed yesterday that Chicago Purchasing Managers' Index declined significantly in August despite expectations for further growth. The index fell to 54.4 compared to 54.7 in July. Analysts expected an increase to 54.9. The index was weighed by output and new orders sub-indices. Nevertheless these sub-indices remained above their 12-month averages.
This morning in Asia Hong Kong Hang Seng declined 0.47%, or 101.44 points, to 21,569.14. China Shanghai Composite Index dropped 1.06%, or 33.96 points, to 3,172.03. The Nikkei plunged 2.14%, or 404.22 points, to 18,486.26.
Asian stocks fell amid declines in U.S. equities and disappointing data from China. The country's official manufacturing purchasing managers' index (PMI) fell to 49.7 in August from 50 in July, slipping below the 50 points threshold that separates expansion from contraction.