China's stock market falls 5%

The Shanghai Composite Index slipped 0.3 percent to 3,435.46 at 9:35 a.m. local time, led by financial companies.

On the data front, investors will be keeping an eye on Friday's non farms payroll data for November in the U.S., which are likely to give further indication on whether the Federal Reserve will raise interest rates in December.

China's main share index closed down by more than 5% after several major brokerage firms announced they were under investigation. The previous month, the official Xinhua News Agency said eight Citic employees and one current and one former employee of the market regulator were suspected of illegal stock trading. The Chinese stock market, "if it's not controlled, moves in these boom-and-bust cycles, and it was definitely heading for another boom".

The government intervention in China's mainland capital markets appears to have worked, at least for now: The Shanghai Stock Exchange Composite Index has risen more than 25 percent since mid-August.

Australia's S&P/ASX 200 Index added 0.1 per cent. Dick Smith Holdings Ltd. plunged 47 per cent in Sydney after the electronics retailer said it sees a A$60 million ($43 million) writedown and abandoned its profit forecast.

The Hang Seng index dropped 0.4 per cent, to 21,974.81 points.

On Sunday, Citi Securities, Haitong Securities and Guosen Securities, three of China's largest brokers, revealed they were being investigated by the country's regulator because of alleged violations of rules relating to signing margin-trade contracts with their customers.

E-mini futures on the Standard & Poor's 500 Index fell 0.2 per cent after the underlying gauge climbed 0.1 per cent on Friday in a shortened session. The yuan was little changed in offshore trading in Hong Kong after the International Monetary Fund said the Chinese currency will join the dollar, euro, pound and yen in its Special Drawing Rights basket.


Popular
  • Obama's State Of The Union Address Set For January 12

    Obama's State Of The Union Address Set For January 12

    Corbyn: Only I will decide on Syria vote

    Pope Francis meets with Muslims in Central African Republic

  • Turbo now even more potent

    Agents' fees: Liverpool pay the most in the Premier League

    Tony Abbott accuses Julie Bishop of lying about leadership spill conversation

  • RBS and Standard Chartered 'weakest' links in Bank of England stress tests

    RBS and Standard Chartered 'weakest' links in Bank of England stress tests

    One dead in terror drill at Kenyan university

    Surrey Police to Tweet details of drink-drivers over Christmas period

  • Leaving them exposed to hackers

    San Antonio Spurs vs Chicago Bulls

    John Bel Edwards is Louisiana's next governor: what you're saying


CONNECT