Global Markets Sink, Suggesting Stock Rout Will Go On

Global Markets Sink, Suggesting Stock Rout Will Go On
HONG KONG — The market sell-off in the United States ricocheted across the world on Tuesday, as investors from Tokyo to Hong Kong to Seoul voted with their feet
and futures markets indicated the American stock market could be in for another tough day.
Japanese shares were down about 7 percent at one point before ending 4.7 percent
lower, while markets in Hong Kong and Taiwan dropped more than 4 percent.
Wall Street’s so-called fear gauge — known as the VIX index — shot up to its highest level since
the summer of 2015, when a market sell-off in China prompted a global sell-off in markets.
In China, markets were overheated after a steep rise since the start of this year,
said David Cui, China equity strategist at Bank of America Merrill Lynch.
An index of Chinese companies listed in Hong Kong dropped by more than 6 percent at one point.
On Tuesday afternoon in Asia, futures that track major New York stock market indexes signaled a drop of about 1 percent.
Still, the share run-up of recent months has been global, and experts said a number of markets elsewhere were also due for a readjustment.