Production Slump Prolongs Chinese Sell-Off
Factory activity in China is now at its lowest level in six years, bolstering suspicions that Asia’s biggest economy is in a tailspin. The Shanghai Composite responded, falling more than 3 percent yesterday, and another 2 percent early today. U.S. and European markets also took hits as investors sold riskier assets in favor of bonds and gold. Experts say the devaluation of the yuan signaled Beijing’s uncertainty and that this, combined with a strong U.S. dollar and the potential for higher interest rates, could further impact China and emerging markets.