Asian dominoes

The collapse in China affect the stock exchange in Hong Kong, where the Hang Seng index slid more than 4 percent. In Japan, the Nikkei fell to a new low level in five months after the yen rose against the dollar amid bets that the Federal Reserve will raise interest rates in the US in September. In five sessions, the index has lost 10%.

Ionomicheskiyat Minister Akira Amari of Japan said that the weakness in China’s economy should be “carefully monitored” since “can spread to ASEAN and other Asian economies.” He expects China to stabilize after the government take steps to stimulate growth.

The leading index of the Bombay Stock Exchange Sensex fell by 4.03%, while the broad index of the Indian National Stock Exchange S & P CNX Nifty was down by 4.14%. The rate of the rupee reached a new two-year low of 66.49 rupees per dollar. India’s central bank announced that it will not hesitate to intervene to reduce currency fluctuations.

Taiwan Stock Exchange lost 7.46%, which is the largest one-day drop ever, noted AFP. In South Korea, the main stock index KOSPI hit its lowest level since August 2013