Beijing, China (BBN)-Chinese shares continued their slide, fuelled by fresh economic data confirming an ongoing slowdown in the country’s economy.
Official data showed that manufacturing activity in the world’s second largest economy contracted at its fastest pace in three years in August, reports BBC.
The mainland’s benchmark Shanghai Composite fell by 2.2 per cent to 3,139.05 points in early trade.
In Hong Kong, the Hang Seng index was slightly lower by 0.3 per cent to 21,608.78.
The slowing of the world’s second largest economy and the extreme volatility on the mainland stock markets have weighed on global equities over the turbulent past few weeks.
Chinese mainland stocks have been on a steep downward slide over the past few months, shedding almost 40 per cent since June.
Any fresh indication that China’s woes are set to continue is likely to counter Beijing’s attempts to reassure traders and stabilise the Shanghai and Shenzhen markets.
Authorities have injected money into the markets, allowed the state pension fund to start buying up shares and lowered lending rates.
So far though, none of those measures have managed to push the markets back into positive territory.
China has also cracked down on people accused of spreading online “rumours”, and who the authorities say have been “destabilising the market”.
Elsewhere in Asia, Japan’s Nikkei 225 was down by 1.2 per cent to 18,659.46 points.
Investors across the region were cautious after US stocks closed in the red again, making August its worst month for trading since 2012.
Australia’s S&P/ASX 200 followed the downward trend and slipped 0.9 per cent lower to 5,160.20 points.
A strengthening iron ore price though has sent mining companies higher with Atlas Iron up by almost 8 per cent and bellwethers BHP Billiton and Rio Tinto up 2.3 per cent and 1.6% respectively.
In South Korea, the benchmark Kospi index also fell, slipping 0.5 per cent to 1,932.25 points.
Affected by the slowdown in China, Seoul reported on Tuesday that exports fell 14.7 per cent in August from a year earlier, worse than expected and the biggest drop in six years.