KEY POINTS:
Hong Kong blue chips slid 1.8 per cent, and markets as far afield as Wall Street also felt the effects of a sharp slide in Chinese stocks yesterday.
The benchmark Hang Seng Index ended down 360.08 points after the Shanghai Composite Index dived nearly 9 per cent - its biggest fall in a decade - amid worries of further tightening government measures against corruption.
"We're having a correction and it can certainly go further," said Howard Gorges, vice chairman at South China Brokerage.
US stocks fell sharply at the open overnight (NZ time), with the Nasdaq tumbling more than 1.5 percent.
Analysts here do not expect the New Zealand sharemarket to be too adversely affected by the situation in China, with a fall of no more than 1 percent likely - which is within the parameters of a normal trading day.
- REUTERS, NZ HERALD STAFF
