Last week’s volatility has continued for Chinese shares which are down sharply again, leading Asia’s shares lower.
The Shanghai Composite closed down 5.33% at 3,016.7 points.
Global markets made big losses after Chinese trading was suspended twice last week on dramatic plunges in values that triggered a circuit breaker mechanism, and spurred more volatility.
China suspended the use of that tool on Friday, a move that reassured traders.
Weak inflation data over the weekend did little to encourage investors.
China’s consumer inflation edged up 1.6% in December from a year ago. That compared to a 1.5% rise in the previous month.
But deflation risks remained in the world’s second largest economy as factory-gate prices continued to fall for the 46th consecutive month, down 5.9%.
The central bank also set the guidance rate for the yuan higher for the second consecutive session to boost sentiment, but investors still remained downbeat on the market.
In late afternoon trade, Hong Kong’s Hang Seng index was down 2.42% at 19,958.33 points following mainland shares.
“It feels as though we are right in the epicentre of the fear, panic and confusion in global markets,” said Chris Weston, market strategist at trading firm IG in a note.
Oil tumbles further
Australia’s S&P/ASX 200 index closed down 1.2% to 4,932.2 as falling oil prices continued to weigh on the market.
The price of Brent crude oil fell another 750 cents to $32.80 a barrel.
Mining heavyweights BHP Billiton and Rio Tinto both plunged 4.9% and 3.3% respectively on the weakness in the resources sector.
Japanese markets were closed for a public holiday.
In South Korea, the benchmark Kospi index ended down 1.2% to 1,894.73 points.
Source: bbc