STI down 39 pts amid big China decline

SHANGHAI sneezed and the rest of Asia caught a case of the sniffles on Monday, with market players across the region scurrying for cover. In Singapore, the benchmark Straits Times Index (STI) tripped 39.23 points or 1.2 per cent to 3,313.42 as blue chips such as DBS, OCBC and Singtel pulled back.

This came as the Shanghai Composite registered its biggest decline in almost three weeks amid increasing concerns over the economy. The benchmark China index fell 8.5 per cent to 3,725.558 - its worst single-session drop since 2007 - as investor confidence in the market remained weak despite Beijing's pump-priming efforts. As expected, the Shanghai slump dragged down markets across the region.

Shenzhen also tumbled 7 per cent to 2,160.09. In Hong Kong, the Hang Seng slumped 3.1 per cent to 24,351.96, while in Taiwan the benchmark index skidded 2.4 per cent to 8,556.68. It was red across Asia as well, with markets from Seoul to Jakarta and Bangkok sliding. Japan's Nikkei also shed one per cent.