U.S. stock indices fell on Tuesday amid concerns over China's economy as investors continued assessing weak manufacturing PMI data released on Tuesday. China is the second biggest economy in the world and its slowdown may harm global economic growth. IMF Managing Director Christine Lagarde warned on Tuesday that the world's emerging economies would have to be more resilient to withstand China's slowdown.
The Dow Jones Industrial Average lost 469.68 points, or 2.8%, to 16,058.35 (all of its 30 components fell). The S&P 500 fell 58.33 points, or 3%, to 1,913 (all of its 10 sectors declined). The Nasdaq Composite dropped 140.40 points, or 2.9%, to 4,636.10.
Meanwhile the Institute for Supply Management reported that activity in the U.S. manufacturing sector fell sharply. The corresponding index came in at 51.1 in August compared to 52.7 in July, while economists had expected the index to slide only to 52.6.
This morning in Asia Hong Kong Hang Seng climbed 0.03%, or 5.67 points, to 21,191.10. China Shanghai Composite Index rose 0.31%, or 9.71 points, to 3,176.34. The Nikkei rebounded by 1.11%, or 202.34 points, to 18,368.03.
Asian stocks fell at the beginning of today's session, but they advanced slightly later despite declines in U.S. equities.
A three-day vacation begins in China on September 3.