China extends its 'Black Monday' stocks selloff

Chinese stocks tumbled another 5 percent on the opening of its markets on Tuesday, extending Monday's nine percent plunge as worries mount over the state of its economy.

The fall followed wild early trading in Asian stocks, with some indices appearing to be recovering after opening lower on Tuesday.

Tokyo's Nikkei-225 index rebounded from a 4.3 percent loss early in trading to a 1.7 percent gain in the early afternoon.

The Asian markets' shaky Tuesday start followed more steep falls in the United States and Europe on Monday.

The Dow Jones industrial average briefly plunged a record 1,000-plus points before recovering to close down 3.8 percent for the day. Its broader S&P index also fell 3.9 percent.

Europe's benchmark Euro Stoxx 50 also closed down 5.61 percent, reflecting similar declines across the region's major bourses. 

The third session of global selloff was triggered by the steepest falls in Chinese stocks since 2007, a day Chinese authorities called Black Monday.

The Shanghai index had already lost more than 30 percent of its value since June.

The stock market falls follow China's move to devalue its currency earlier this month and have triggered global fears that all is not well in the world's second-biggest economy.

Shares in some of the world's biggest companies had plummeted in China's crash.

The Chinese government had tried to reassure investors by investing state funds into the share market and announcing that pensions would be allowed to buy shares.

David Blanchflower, an economics professor at Dartmouth College and a former member of the Bank of England's interest rate setting policy committee, told Al Jazeera that the selloff that started in China may not be over.

"The question here is if this is a big turning point or is this the end," Blanchflower said.

Al Jazeera and Reuters