It's no secret that China's economy has been gradually slowing in recent years from a breakneck double-digit pace in past decades, as Beijing tries to transform its growth model from a reliance on heavy manufacturing and exports to one with a more vibrant services sector and stronger domestic demand. China's factory activity shrank for the seventh consecutive month in September, hitting a six-and-a-half year low, according to a preliminary survey. China's surprise yuan devaluation last month and a plunge in its stock markets since June have fuelled worries about more shocks to the economy, although Premier Li Keqiang has brushed off concerns it is facing a hard landing. A key measure of China's all-important manufacturing sector has nose-dived to its lowest level in 78 months, yet another sign that the country's factories are running out of steam. Yet Beijing still seems largely unruffled, and has maintained its 7% annual growth target for this year. Overnight on Wall Street, the Dow Jones industrial average fell 1.09 per cent, the S&P 500 lost 1.23 per cent, and the Nasdaq Composite fell 1.5 per cent to 4,756.72. The benchmark two-year US Treasury yield fell to 0.67 percent, nearing a two-week low. Weak economic indicator also weighed on Australian markets, with indices in Sydney shedding almost 1% in early trade. And now, we have more confirmation that it's real ugly out there. The Japanese yen held firm against the dollar at 120.24 as investors shied away from adding risky bets. United States stock futures are getting crushed. Broader risk aversion failed to lift demand for precious metals with both spot gold and silver nursing big overnight losses.

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