China Market Halted After 7% Dive

Russia’s ruble strengthened with oil. The offshore yuan slid the most since August. Germany’s Dax dropped 3.2%, while France’s CAC 40 declined 2.5% and London’s FTSE 100 shed 2%.

If it fluctuates by 7 percent in either direction all stock trading will be suspended for the reminder of the day.

China’s manufacturing PMI came out exactly as expected, but its non-manufacturing PMI came out at 54.4, after November’s 53.3 reading.

The circuit breaker mechanism is tied to the CSI 300 stock index which tracks some of the largest-cap stocks on the Shanghai and Shenzhen bourses. China is a major buyer of European goods, and trouble in the world’s second-largest economy put a damper on the first trading session of 2016.

This new safeguard – which prompts a 15-minute halt after a 5% move and a shutting of…

The measures were created a year ago after the stock market crash in China, but only came into effect today.

The CSI 300 Index of the biggest companies traded in Shanghai and Shenzhen fell 0.91 percent to 3,731.00 points, down 2.79 percent for the week.

The benchmark Nikkei 225 Stock Average lost 582.73 points, or 3.06%, to end at 18,450.98 while the broader Topix index was down 37.63 points, or 2.43%, at 1,509.67.

The Caixin December manufacturing PMI was down at 48.2, compared with 48.6 in November. (Any number less than 50 suggests negative sentiment.) Observers said the fall was a reminder of the challenges facing China’s economy, which officials have predicted will begin to turn around in 2016, after a year in which growth slowed and exports contracted. Both had tumbled more than 4% at one point.

Indonesia’s Jakarta Composite index dropped 12 percent amid the slump in oil and a strong greenback. Figures released last week showed that China’s investment in its network of high-speed railways rose to some 820 billion yuan (around $125 billion) a year ago – the highest level since 2010’s 840 billion yuan. Emaar Properties PJSC led Dubai shares to the steepest two-day loss since Dec 13.

The year just passed by will be remembered for its volatility, thanks to the Greek debt crisis, fragile recovery in the euro zone, Fed’s rate dilemma, the slowdown in China’s growth and a global oil glut that drove down crude prices to 11-year lows. In early trades, the local unit was trading at $0.7292, down from last Thursday’s close of $0.7305.

Crude oil jumped after Saudi Arabia expelled Iranian diplomats from the country. Iran’s supreme leader Ayatollah Ali Khamenei warned of repercussions and protesters armed with rocks and firebombs attacked the Saudi embassy in Tehran on Saturday and set parts of the building on fire. It was the first time exchanges have been forced to suspend trade in such a manner.

Asia-Pacific stock markets were broadly under pressure on Monday morning.

Every said he believed the yuan in Shanghai and Hong Kong had a lot further to fall.