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Wall St sell-off prompts global rout

By Wang Yanfei | China Daily | Updated: 2018-10-12 03:27
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A stock market panic that started on Wall Street. [Photo provided to China Daily]

A-shares likely to continue enticing foreign investors

China's A-share market, together with other major Asian bourses, plunged on Thursday in a chain reaction following the sell-off in the United States.

Major markets in Asia finished sharply lower, with the fall in the Chinese mainland leading the region — the Shanghai Composite Index fell 5.2 percent, hitting the lowest level since February 2016; Japan's Nikkei 225 was down 3.9 percent and Hong Kong's Hang Seng dropped 3.6 percent.

The plunge in Asian stocks is believed to be a direct reaction to the sell-off in the US market on Wednesday, the sharpest drop in eight months.

Market observers attributed the US stock correction to the market anticipating US Federal Reserve interest rate rises, with such expectations dampening the attractiveness of stocks with higher treasury bond yields.

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