European and US stocks catch Asia jitters

Fresh stimulus may have given a jolt to Chinese stocks but markets elsewhere slumped today over jitters about the slowdown in the world's number two economy and rising geopolitical risk after North Korea's latest nuclear test.
Commodity sector share prices were pulled lower also by sliding oil markets which saw Brent North Sea crude slump below USD 35 a barrel for the first time in 11 years.
European indices were down nearly 2 per cent in afternoon trading, and Wall Street opened sharply lower.
"European markets are trading once again lower... On the back of more disappointing Chinese economic data" and on North Korea, said Markus Huber, trader at City of London Markets.

"News that the Chinese Caixin services PMI came in much lower than expected overnight has stirred fears that in addition to the already struggling manufacturing sector, services are also starting to be in trouble which would certainly not only deepen China's economic woes but also put the likelihood of a sustained economic rebound several months back."
Meanwhile, traders at US broker Charles Schwab said "US stocks are trading decisively lower in early action, with already elevated geopolitical concerns being exacerbated by North Korea's claim of a successful miniaturized hydrogen nuclear bomb test, while Chinese growth concerns continue to fester to weigh on commodity stocks."

Asian shares mostly fell today but Chinese markets rallied, with reports Beijing had spent billions buying shares after a more than seven percent decline in the first two trading days of 2016.

The South Korean won sank against the dollar after North Korea announced it had conducted its fourth nuclear test, although there was little wider impact on regional equities.
Shanghai finally chalked up some gains as the country's central bank pumped cash into the beleaguered financial system. Experts said it was used to shore up stocks to avert a repeat of last summer's rout that saw trillions of dollars wiped off valuations.

The People's Bank of China also set its daily yuan reference rate against the dollar at its lowest level in almost five years, according to Bloomberg News.
But analysts warned the moves would cause more problems down the line as China's economy, the world's second biggest and a key driver of global growth, heads for its worst annual performance in a quarter of a century.
There was less reaction to North Korea's announcement that it had tested a hydrogen bomb.
Back home, of the 30-share Sensex pack, 19 scrips rose
while 11 declined.
Major gainers were, Tata Steel (5.24 pc), Tata Motors (1.81 pc), Lupin (1.54 pc), Bharti Airtel (1.47 pc), Larsen (1.22 pc), Sun Pharma (1.13 pc) and BHEL (1.06 pc).

However, Axis Bank fell by 1.71 per cent followed by Infosys (1.44 pc) ICICI Bank (1.20 pc) Adani Ports (1.19 pc) and NTPC (0.75 pc).
Among BSE sectoral and industry indices, metal rose by 2.33 per cent, capital goods (1.11 pc), industrials (1.02 pc), telecom (0.96 pc), realty (0.76 pc), oil&gass (0.62 pc), power (0.53 pc), energy (0.46 pc) and healthcare (0.36 pc).
While, IT fell by 0.51 per cent, banking by 0.44 per cent and teck by 0.29 per cent.
The market breadth turned positive as 1,656 stocks ended higher, 890 declined, while 142 ruled unchanged.
The total turnover fell to Rs 2,206.24 crore from Rs 2,853.41 crore yesterday.