The equity market continues to be battered as shares in Asia fell to start the week, following the slump in Wall Street last Friday, according to a report from Bloomberg.
The MSCI Asia Pacific Index, a broader index of Asia-Pacific shares outside of Japan, is at 141.95, a 0.4 percent drop, as of 9 a.m. Tokyo time. New Zealand's NZX50 Index is also down by 0.4 percent.
Reuters adds that Japan's Nikkei has slipped by 0.8 percent in early trading, while the Australian main index is down 0.4 percent as the slump in global commodity prices continues.
Copper and the Thomson Reuters RB index also hit their lowest in six years.
Bloomberg reports The slowdown in global equities is fueled by the Federal Reserve Bank's decision on when it will raise interest rates and the uncertainty in China, Aisa's largest economy.
"Share markets are likely to remain volatile as we are still going through a seasonally weak period of the year for shares," Shane Oliver, Sydney-based global strategist at AMP Capital Investors Ltd., said to Bloomberg. "Uncertainties remain regarding Chinese economic growth and a likely Fed interest rate hike lies ahead for later this year."
Bloomberg also adds that further clues about China's slowdown will be revealed on Monday when the country will be reporting on industrial company profits.
The Federal Reserve's Open-Market Committee will be meeting on Tuesday and Wednesday.
Reuters adds that analyst aren't expecting interest rates to be raised yet. Although, a September rates lift-off is still on the table.
"We expect Fed voters to pull the trigger in September," analysts at Australia and New Zealand Banking Group said to Reuters. "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."
