- Kenya airport whistleblower fears for his life
- Sheinbaum to take office as Mexico's first woman president
- Scientists fear underfunded Argentina research on verge of collapse
- US port officials gird for strike despite last-minute bargaining
- With 118 dead from Hurricane Helene, Biden defends US government response
- Breeder who tried to create enormous trophy sheep jailed in US
- Qatar Airways seeking 25% stake in Virgin Australia
- US port officials gird for strike as labor talks stay stuck
- As toll crosses 100, Trump puts Hurricane Helene at election center stage
- US Fed Chair sees 'further disinflation' in economy
- Epic Games sues Google and Samsung over app store
- Officials see no shortages from likely US port strike
- UK families of Gaza hostages warn Lebanon attack 'takes focus away'
- Shares in Stellantis, Aston Martin skid on profit warnings
- Dali prints found in London garage sold at auction
- ECB chief backs bank mergers amid UniCredit, Commerzbank talk
- China stocks soar on stimulus, but US and Europe retreat
- 100 dead in storm Helene damage, flooding across US southeast
- China stocks soar on stimulus, Europe slides on automaker woes
- German antitrust watchdog steps up monitoring of Microsoft
- Nepal's urban poor count cost of 'nightmare' floods
- E.Guinea, Gabon clash at ICJ over oil-rich islands
- New blow for UK's Starmer as growth data disappoints
- China's top banks to tweak mortgage rates to boost housing market
- Muslim women break taboos navigating east London's waterways
- Nepal dam-building spree powers electric vehicle boom
- More than 60 dead from storm Helene as rescue, cleanup efforts grow
- Dozens missing, 9 dead in migrant boat wreck off Spanish Canaries
- Death toll from Hurricane John hits eight in Mexico
- Storm Helene's toll rises as rescue and cleanup efforts gain pace
- SpaceX launches mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding as cleanup begins
- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
- Argentina judge orders dictionary to delete pejorative definition of 'Jewish'
- Global stocks rise on rate hopes, Beijing stimulus
- S.African woman turns 118, among the oldest in the world
- UK clears $4 bn AI partnership between Amazon, Anthropic
- Barca fans barred from Champions League away game over racist banner
- Chinese stocks extend surge, Europe higher on Beijing stimulus
- Pope says Church must 'seek forgiveness' for child sexual abuse
- China caps week of 'bazooka' stimulus for ailing economy with rate cut
China lockdowns, rate hike fears batter stock markets
Stock markets sank Monday on growing concerns that lockdowns in China aimed at fighting a worsening Covid outbreak could threaten the country's economy and global supply chains.
The losses extended a sell-off across the world last week fuelled by comments from Federal Reserve boss Jerome Powell indicating officials will hike interest rates by half a point next month and possibly several times more by year's end.
China's struggle to get a grip on a Covid outbreak that has forced Shanghai -- the country's biggest city -- into lockdown and dealing a blow to demand.
Officials in the finance hub reported 51 deaths Monday, its highest daily toll despite weeks of strict containment measures, while Beijing warned of a "grim" situation as infections rise.
The lockdowns will "cause a logistical problem that's going to affect not just China but also the rest of the world", OANDA's Jeffrey Halley told Bloomberg TV.
Officials' determination to continue with a zero-Covid policy as well as a lack of government stimulus, "that all points to lower China stocks and we are going to see a weaker yuan going forward".
Investors were already fleeing risk assets as they become worried that the Fed tightening -- to fight inflation at more than 40-year highs -- will knock the pandemic economic recovery off course and dent companies' bottom line.
With earnings season under way, a close eye is being kept on what firms say about the impact on and the outlook for business in light of inflation, forecast rate hikes, supply chain snarls and the Ukraine war.
"Having spent most of the last few weeks trying to put to one side concerns about events in eastern Europe, a slowdown in China, and the increasing risks of what inflation might do to company earnings, as well as consumer incomes, the final straw appears to be a concern about the prospect of a policy mistake by central banks, and a possible recession by the end of the year," said Michael Hewson of CMC Markets.
And Geir Lode, at Federated Hermes, added: "There has been little to avert the investor pessimism as inflation and interest rate expectations start to bite.
"In particular due to the uncertainty of the macro environment, expectations are low with regard to forward estimates and guidance, building on lowered expectations from the previous quarter."
All three main indexes on Wall Street ended more than two percent down Friday, and Asia followed suit with hefty losses.
Hong Kong and Shanghai led the selling, with both markets suffering hefty losses, while Tokyo, Seoul, Singapore, Taipei, Mumbai, Bangkok and Jakarta were also deep in the red.
London, Paris and Frankfurt were sharply lower in the morning.
Sydney and Wellington were closed for holidays.
The hit to demand for energy in China also dragged on crude. WTI fell below $100 a barrel, even as the war in Ukraine hits supplies of the black gold owing to embargoes on Russian exports.
"Oil is rerating lower due to the China consumption hit while the Federal Reserve is raising interest rates to slow down the US economy," said Stephen Innes at SPI Asset Management.
"Those are two gusty headwinds suggesting some oil bulls will give way to recession fears and demand devastation."
On currency markets, the euro was unable to hold a brief rally that came on the back of Emmanuel Macron's victory in France's presidential election, seeing off far-right challenger Marine Le Pen.
- Key figures at 0810 GMT -
Tokyo - Nikkei 225: DOWN 1.9 percent at 26,590.78 (close)
Hong Kong - Hang Seng Index: DOWN 3.7 percent at 19,869.34 (close)
Shanghai - Composite: DOWN 5.1 percent at 2,928.51 (close)
London - FTSE 100: DOWN 1.7 percent at 7,393.58
Brent North Sea crude: DOWN 4.0 percent at $102.41 per barrel
West Texas Intermediate: DOWN 4.0 percent at $97.95 per barrel
Euro/dollar: DOWN at $1.0743 from $1.0801 late on Friday
Dollar/yen: DOWN at 128.21 yen from 128.51 yen
Pound/dollar: DOWN at $1.2754 from $1.2834
Euro/pound: UP at 84.23 pence from 84.14 pence
New York - Dow: DOWN 2.8 percent at 33,811.40 (close)
H.Müller--CPN