World stock markets plunge: Shanghai down 8.5%
Asian stock markets started the week with plunges in the leading indexes. The world is waiting to see how the crisis in Asia would affect the European and American markets.
The Far East stock markets continue to fall today. The Shanghai Composite lost 8.5% of its value in the first hours of trade. The leading Hong Kong Market index lost 4.5% and reached a three year low. Tokyo is down 3.5% and the leading index in Taiwan plunged 7.5%, marking the worst stock market opening in its history.
The world is now waiting to see how the European and US markets would respond when they open later today.
Following the concerning figures in the Asian markets, Tel Aviv is also dreading the opening of the local stock exchange today. Yesterday, Tel Aviv's leading indexes dropped by over than 4%.
The Chinese government announced yesterday that for the first time it would enable local pension funds to invest in the stock market. Such a move may cause hundreds of billions of yuan to flow into the exchange market and encourage investors to reinvest.
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