Asian markets resumed their slump on Monday, with most major indexes across the continent losing more than 1% of their value during the first session of the week, and bringing back concerns of a global market correction following several days of losses last week.
After almost a solid week of falling stocks, global markets paused on Friday, with Asia, Europe, and the US seeing a significant rebound in prices. The slump, however, looks to have resumed in Asia on Monday.
The Shanghai Composite, China's most important mainland share index, dropped 1.5% on Monday, while Japan's Nikkei 225 lost 1.9% as the risk-off environment that permeated markets last week returned.
As well as losses in Asia, futures markets are pointing to another drop in all three major US indexes when trading. The Nasdaq looks to be the biggest faller, with futures suggesting a fall of about 1% at the open.
"Just as you shouldn't breathe too big a sigh of relief after earth tremors end, we remain anxious of a market that seems jittery," analysts at Dutch lender ING said on Monday morning.
The JSE's all share index was down almost 2% as Naspers (-4% to R2,777.39) continues to decline. Naspers accounts for roughly a fifth of the JSE's market capitalisation. Its chief holding, the Chinese tech behemoth Tencent, fell 2% on Monday amid continued concerns about the Chinese government's new gaming regulations.
The rand was last at R14.45/$ and R16.76/euro.
European stock indexes also saw losses on Monday morning, although their falls were minor. By midday on Monday, the FTSE 100 in London and the German Dax were flat.
Elsewhere, Saudi Arabia's main stock market, the Taddawul, rebounded by almost 2% on Monday, following a major slump during Sunday's trading session, driven by fears that US President Donald Trump may move to impose sanctions on the Kingdom. This would be in response to the disappearance of journalist Jamal Khashoggi in the Turkish capital Istanbul last week. Turkish officials believe he may have been murdered by Saudi agents.
Trump threatened "severe punishment" against Saudi Arabia if it is found to be involved in Khashoggi's disappearance, which spooked investors, causing the index to fall as much as 7% at one point on Sunday.
On Monday, it has bounced 1.8% to trade at 7,397 points.
Trump's threats have also driven the price of oil higher, reflecting concerns that US sanctions against Saudi Arabia could further threaten supply. Brent crude, the international benchmark, is 0.7% at $80.95 per barrel on Monday morning.
Also from Business Insider South Africa: