A man walks past an electronic stock board of a securities firm in Tokyo on Monday, July 27, 2015. On Monday, the market dropped 8.5%, its biggest daily fall in more than eight years. Most of the other Asian indices were lower with India continuing its downtrend. The latest sell-off in China may indicate that the worsening state of the real economy internationally may be finding a reflection in global stock markets, which have become wildly inflated as a result of almost seven years of near-zero interest rates by the Federal Reserve and other central banks. ASIA’S DAY: China’s Shanghai Composite Index rebounded 3.4 percent to close at 3,789.17 after flitting between gains and losses for most of Wednesday. The benchmark Kospi average swung between gains and losses before closing down 7.15 points or 0.35 percent at 2,038.81. “The variety of reasons why this latest Chinese plunge has had such an effect on the markets captures the reasons why China itself is such a huge, and worrying, figure in the macro-economic landscape�, said Spreadex analyst Connor Campbell. “Investors are not confident that the bull market will return any time soon�, Jimmy Zuo, a trader at Guosen Securities, told Bloomberg. China’s market rules prevent share prices from rising or falling more than 10% within a day. It was also pressured by month-end selling for the yen by Japanese exporters, traders said. The news trumped forecast-busting earnings from online retailer Amazon. The broad-based S&P 500 fell 0.68 per cent to 2,065.44, while the tech-rich Nasdaq Composite Index dropped 1.04 per cent to 5,035.16. “Whatever the Fed does, we expect it to be very slow�, said Kristina Hooper, global market strategist with Allianz Global Investors. “We expect Fed voters to pull the trigger in September, but for the path to interest rate normalization to be a long one given the global risk profile, the lack of inflationary pressure, and concerns over what moving too quickly may do to asset markets, particularly the dollar, and the wider economy�, said an analyst at Australia and New Zealand Banking Group. The dollar was higher against many of its key rivals, including the euro and yen, with the consensus for the first U.S. rate hike in nearly a decade still revolving around September. Oil prices continue to suffer from fears about the global economy as well as an oversupply of the commodity. The weak US data lifted gold as it dampened expectations of an early US rate rise. The yen is considered a safe investment in times of uncertainty. Against the euro, the dollar was up 0.6 percent at $1.1022. Against a basket of currencies, the dollar was off 0.1 percent at 96.716. These actions were temporarily successful in stopping the rout, helping the Chinese stock market recover in three weeks 14 percentage points of the 30 percentage points it had lost over previous weeks. Share indices in Frankfurt and Paris tumbled more than 2.5 percent, while London’s FTSE 100 ended down 1.13 percent. The Dow climbed 185 points, or 1.1%, to 17625. Siam Cement slid 1.94 percent to 506 baht, while oil company PTT fell 0.95 percent to 314 baht. The benchmark index gyrated sharply through the day between a 5.0% decline and a one% rise. Teva Pharmaceutical’s shares jumped 16.41 percent to a record high of $72.00 after the company agreed to buy Allergan’s generic drug business for $40.5 billion, giving up on its bid to buy Mylan. – Jakarta ended down 1.76 percent, or 85.31 points, at 4,771.29.

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