Global Markets Sink, Suggesting Stock Rout Will Go On<br />HONG KONG — The market sell-off in the United States ricocheted across the world on Tuesday, as investors from Tokyo to Hong Kong to Seoul voted with their feet<br />and futures markets indicated the American stock market could be in for another tough day.<br />Japanese shares were down about 7 percent at one point before ending 4.7 percent<br />lower, while markets in Hong Kong and Taiwan dropped more than 4 percent.<br />Wall Street’s so-called fear gauge — known as the VIX index — shot up to its highest level since<br />the summer of 2015, when a market sell-off in China prompted a global sell-off in markets.<br />In China, markets were overheated after a steep rise since the start of this year,<br />said David Cui, China equity strategist at Bank of America Merrill Lynch.<br />An index of Chinese companies listed in Hong Kong dropped by more than 6 percent at one point.<br />On Tuesday afternoon in Asia, futures that track major New York stock market indexes signaled a drop of about 1 percent.<br />Still, the share run-up of recent months has been global, and experts said a number of markets elsewhere were also due for a readjustment.
