Asia stock markets getting ravaged to open Monday

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Bloomberg

Asian stocks slid to a two-year low as the selloff that has spread to almost every corner of the global equity market intensified, spurring demand for haven assets.
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CNBC

China's benchmark Shanghai Composite index opened down as much as 5.2 percent to 3,321.4, even as authorities allowed pension funds managed by local governments to invest in the stock market for the first time over the weekend. The move could potentially channel hundreds of billions of yuan into the country's struggling equity market.
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Getting really ugly. U.S. futures are down as well.

http://money.cnn.com/data/premarket/
 
Laevateinn said:
I'm going to Japan next month. Should I get yen now or wait 2 weeks?
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Depends on what you're converting from. If you're converting from chinese yuan, i'd get yen now. Or anywhere else in asia. the nikkei seems to be getting hit the least out of all the asian markets

Anywhere else i'd wait. Asian markets are getting hammered compared to western ones right now so your western currency should get you more yen in a few weeks than it does now.
 
Pyrokai said:
What is causing Asian markets to tumble?
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Not super knowledgeable about this but from what I've gathered it's because of the devaluation of the yuan, investors leaving developing markets, Chinese housing market has gone to shit, and the Chinese economy in general slowing down.
 
This is bringing the US 10 year treasury note way down, which affects mortgage rates. If you've been considering refinancing, do it soon. And I'm guessing this staves off the fed rate hike in September.
 
This is nice for me.
GBP to PHP is getting higher, will hopefully be nice and high when I have to transfer funds to my PNB account next month for holiday.
 
GaimeGuy said:
Depends on what you're converting from. If you're converting from chinese yuan, i'd get yen now. Or anywhere else in asia. the nikkei seems to be getting hit the least out of all the asian markets

Anywhere else i'd wait. Asian markets are getting hammered compared to western ones right now so your western currency should get you more yen in a few weeks than it does now.
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I'm converting from USD. I guess I'll wait then but I'm getting nervous since it went from around $1 -> 124 yen to $1 to 121 in about a week.
 
Gallbaro said:
China is in a race against its own demographics to shift the entirety of their population away from subsistence farming.
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Not only that, but they are in a race against other countries that are becoming increasingly attractive for outsourcing -- Vietnam and India, for instance. Read last week that Lenovo was laying off Chinese workers and outsourcing to India. If India is finally getting corruption under control and its infrastructure up to snuff it could be very disruptive to China. Due to that terrible infrastructure the majority of their impact was in the IT space, that may be changing and extending into manufacturing.
 
Savitar said:
Surely that pension money helped to keep things from being worse.........*cough*
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Tee hee. =p

Gonna be a fun week. US equity futures are getting hit hard right now. I wonder how long it'll be before the Fed buckles and announces QE4 since they can't seem to think of many other ways to try and juice the markets.
 
Mr Nash said:
Tee hee. =p

Gonna be a fun week. US equity futures are getting hit hard right now. I wonder how long it'll be before the Fed buckles and announces QE4 since they can't seem to think of many other ways to try and juice the markets.
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I think the first thing they'd do would be to come out and say unequivocally "no rate hike this year / next 6 months," since I know people have been concerned about when that would happen. Also I heard Shanghai is primarily retail investors (i.e. not as sophisticated as institutional investors) so Hong Kong is a better market to look at for gauging China.
 
Mr Nash said:
Tee hee. =p

Gonna be a fun week. US equity futures are getting hit hard right now. I wonder how long it'll be before the Fed buckles and announces QE4 since they can't seem to think of many other ways to try and juice the markets.
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Unfortunately funneling more money to the rich is not going to do it anymore. The solution to the next crash, whenever that is, is a policy and not monetary approach.
 
So what are the actual mechanics behind a currency devaluation? I'm reading a few articles about it, and it seems China is printing Yuan and using it to buy US dollars?
 
BigWeather said:
Not only that, but they are in a race against other countries that are becoming increasingly attractive for outsourcing -- Vietnam and India, for instance. Read last week that Lenovo was laying off Chinese workers and outsourcing to India. If India is finally getting corruption under control and its infrastructure up to snuff it could be very disruptive to China. Due to that terrible infrastructure the majority of their impact was in the IT space, that may be changing and extending into manufacturing.
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As long as the global economy needs manufacturing, China is still the place to do it by a longshot. From what I've heard, no manufacturer in his right mind would go to India. And as for Vietnam, that country possesses all the challenges of China, but to a greater degree. Vietnam is a good place to do business for ethnic Vietnamese or Taiwanese, but probably not for anyone else.

I think the Japanese have the right idea setting up shop in Myanmar, but their investments look like they will only pay off after decades, and there is a lot of risk involved in that region as well.
 
braves01 said:
I think the first thing they'd do would be to come out and say unequivocally "no rate hike this year / next 6 months," since I know people have been concerned about when that would happen. Also I heard Shanghai is primarily retail investors (i.e. not as sophisticated as institutional investors) so Hong Kong is a better market to look at for gauging China.
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I'm of the mind that the Baltic Dry Index will be the big thing to watch when gauging the health of the global economy. It had that dead cat bounce a little while ago but is back circling the drain now. Container ship traffic is very, very low right now, and I'm not convinced that it's because of overstock from ordering a ton of stuff earlier, but rather a reflection of rapidly declining demand.

Looking at the sheer amount of debt the average person has these days, it wouldn't come as a surprise if the spigot has run dry. Some folks are responsible when handling credit, but the majority of the populace isn't, and that is going to have consequences. I'm just wonder what is going to get hit hard first, but if I were to hazard a guess, I'd say the automotive sector given the sheer amount of sub-prime lending that has been going on there in recent years.

Edit: So, how long before we hear a lot of talk about short selling? Given what's going on right now, some folks will make oodles of money doing that. =S
 
djplaeskool said:
So this would qualify as a "correction," right?

People tend to freak out over the negative movement, but they forget the very rapid rise over the prior 8-12 months
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Pretty much. Anyone who couldn't see the crash coming was very short sighted. Also crashes tend to cause people freak out over the negative and sell sell sell deepening he cut as more and more panic.
 
Xenus said:
Pretty much. Anyone who couldn't see the crash coming was very short sighted. Also crashes tend to cause people freak out over the negative and sell sell sell deepening he cut as more and more panic.
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You must've made a killing in the options markets with the sort of chest-puffing you're doing.

I frankly think the speculative run on U.S. companies doesn't cohere with reality. Profitability of American businesses is tracking at all-time highs, and the valuation fundamental of most of these companies - while certainly inflated in certain sectors - are within half a standard deviation of historical metrics. The run on global stock markets was spurred by fairly discretized geopolitical events that have very little to do with company fundamentals. The Chinese contracting growth story's been known for years, so it's not as though myopia is to blame. Rather, it's the canonization and confirmation of this plateauing by the Chinese government's overhanded currency manipulation tactics that fomented this latest run.
 
U.S. markets being down right now is an absolute joke. All indicators are through the roof and as someone pointed out, profitability is astronomical. Gotta love the free market though, it is always spot on with reality and isn't just a gambling machine.
 
I do tech support for a financial company, so glad I have mondays and tuesdays off. I see why we were busier than usual today
 
Days like these make me happy I work in compliance. I just get to sit back and enjoy watching everyone freak out.

But in reality a correction has been coming for a while in china. Its overvalued, just sit back and relax.
 
GregLombardi said:
U.S. markets being down right now is an absolute joke. All indicators are through the roof and as someone pointed out, profitability is astronomical. Gotta love the free market though, it is always spot on with reality and isn't just a gambling machine.
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I'd be taking profits off the table if I were in their position too though. No reason not to. Then you can just invest right back in after a few days and ride the high again.
 
So for the first time in 3 years my side vanguard fund Is down about 1k right now. That money is being saved to build a down payment fund but honestly with current home prices in my area I can't use it for another year or so anyways.

I'm going to keep my current buy schedule and ride this out.
 
Effect said:
What the hell happen to cause this? Was China just 8 years late to the party or is this something else?
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China had a stock market bubble going on. World investors are getting scared because of that popping, as well as the Chinese manufacturing sector slowing down as well as extremely high levels of local government debt and consumer debt.

All that means is that stock markets around the world are taking a hit because CHina was the nation who was basically buying up all the commodities.
 
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