The selloff saw the CSI300 index of the largest listed companies in Shanghai and Shenzhen lose 7.0 percent before trading was suspended, its worst single-day performance since late August 2015, the depth of a summer stock market rout.
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Economic data by the Institute for Supply Management is expected to show that the index of national factory activity rose to 49 in December from 48.6 in November.
TRADING floors began the new year in a state of chaos as weak economic data from China and heightened tension in the Middle East wreaked havoc on financial markets worldwide.
At 9:36 a.m. ET (1436 GMT), the Dow Jones industrial average was down 349.78 points, or 2.01 percent, at 17,075.25, the S&P 500 was down 37.67 points, or 1.84 percent, at 2,006.27 and the Nasdaq Composite index was down 111.77 points, or 2.23 percent, at 4,895.64.
Goldman Sachs was down 3.2 percent at $174.45 and was the biggest drag on the Dow.
S&P 500 e-minis were down 34.5 points, or 1.69 percent, with 236,049 contracts traded.
All 10 major S&P sectors were lower on Monday, led by a 2.52 percent decline in financials.SPSY. Only Nasdaq finished the year in the black, gaining 5.73 percent.
Asian markets, which experts say are responsible for spooking USA investors, also remained down sharply at press time. Netflix Inc. sank 4.2 percent after Robert W. Baird downgraded the shares to neutral from outperform.
Developing-nation stocks and currencies slumped in 2015 on concern the slowdown in the world’s second-biggest economy and prospects of more US interest-rate increases will result in further losses this year. Mainland Chinese shares fell 7 percent.
Among the few bright spots, Baxalta (BXLT.N) was up 3.3 percent at $40.30 as a buyout from United Kingdom drugmaker Shire (SHP.L) loomed closer.
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Taiwan’s Taiex Index fell 2.2 percent, while South Korea’s Kospi index dropped 1.6 percent.
