Morning Market Update: Sell-Off Continues Around The World

The broad sell-off in risk assets that started last week continues after markets across Asia slumped in overnight trading.

The Shanghai Composite fell 8.5% on Monday after the Beijing government defied widely-held expectations that it would intervene to support the country's sliding stock market. Markets were widely expecting the government to cut interest rates or inject liquidity to stem declines.

China Xinhua News, the official mouthpiece of the Beijing government, called the sell-off "Black Monday".

Market declines

Almost every other emerging market stock index has slumped following China's decline. Topping the loser board are the Philippines' stock market, the Saudi Tadawul all share index and the Tel Aviv 25 index falling 6.96%, 6.83% and 6.7% respectively. The TOPIX declined 5.9%, the Nikkei 4.6%, the Hang Seng...