Chinese stocks are being hurt by a dispute between China and Japan over disputed islands that have heightened tensions between Asia's two biggest economies.
They're also under pressure as investors worry about what Chinese authorities will do to restart growth amid the country's economic slowdown. Wong said it's unlikely that Chinese authorities will unveil any major stimulus measures ahead of the National Day holiday next week or an expected but still unscheduled Communist Party meeting to hand over power to a new generation of leaders.
"This inaction by the Chinese government also weighs," Wong said.
Asian markets were also reacting to some downbeat economic reports released over the weekend. The U.S. Labor Department said that the unemployment rate rose in more than half of states last month, the latest evidence that hiring remains tepid across the world's biggest economy. The World Trade Organization, meanwhile, cut estimates for global trade growth for this year and next. Both reports came out on Friday after Asian markets closed.In Tokyo, camera maker Canon Inc. slid 3.7 percent and global automaker Honda Motor Co. dropped 1.8 percent. Australian mining giant Rio Tinto Ltd. lost 2 percent. In currencies, the euro weakened to $1.2910 from $1.2989 in late trading Friday while the dollar fell to 77.97 Japanese yen from 78.15 yen. U.S. benchmark crude for October delivery was down 84 cents to $92.05 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 47 cents to settle at $92.89 on Friday.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV