- Asian equities were mixed Tuesday as China's sluggish economic recovery prompted growth estimate reduction and a warning from US Treasury Secretary Yellen that it might have a global impact.
- Hong Kong and mainland Chinese stocks both declined. South Korean and Australian benchmark indexes also fell, while Japanese equities rallied, helped in part by advances in electric car supply chain firms after Tesla shares advanced and BYD announced a threefold increase in first-half net earnings.
- US stock futures contracts extended their losses on news that US banks will face stricter mortgage capital regulations than the global standard. On Monday, the S&P 500 climbed 0.4% and the tech-heavy Nasdaq 100 gained nearly 1%, with Activision Blizzard rising after Microsoft and British authorities held constructive negotiations to finalise the firms' $69 billion merger.
- The dollar fell marginally versus major currencies on Tuesday, while the offshore yuan remained unchanged.
- Concern is building in Asia following China's poor economic data, which forced economists at several big institutions to reduce their forecasts. JPMorgan, Morgan Stanley, and Citigroup have reduced their growth forecasts for this year to 5%, putting Beijing's official GDP target of the same figure in jeopardy.
