- Stock benchmarks sank across Asia after Wall Street ended a bad week on a low note and as China's housing downturn worsened, dampening market mood.
- Hong Kong stocks opened down almost 2%, with shares of Country Garden down as high as 12%. The benchmark of onshore Chinese shares, the CSI 300 Index, extended its drop after ending its worst week since March on Friday, amid signs of economic weakness, while the offshore yuan stayed near its worst level this year.
- Country Garden, previously China's largest private-sector developer by sales, is in the spotlight as it faces default and the latest economic statistics for the country shows little promise of a recovery in growth.
- Meanwhile, in Japan, the yen surpassed its year high of 145.07 /dlr as investors began to look for signals that the government could interfere, as it did last year. The currency has fallen for five days in a row as of Friday, while an index of dollar strength has risen during the last four weeks as Treasury yields have risen.
