BEIJING: China’s Shanghai composite index plunged more than 6% Tuesday and other Asian markets also declined as investors sold the region’s stocks despite the stabilization of China’s yuan currency following its dramatic devaluation last week.
The mainland China stock benchmark’s 6.2% drop to 3,748.16 was its biggest decline in three weeks.
The index fell 8.5% in late July as worries about China’s ability to maintain high economic growth levels has undermined investor confidence.
The steep decline Tuesday marks a return to the volatility that has affected the country’s markets for much of the summer amid a yearlong stock rally that analysts say is unsustainable.
Hong Kong’s index fell 1.4% and stocks in Tokyo were down 0.3%. U.S. stock futures showed little reaction to the plunge in China.
