Asia follows the negative trend from the Chinese market which is further aggravated by the global slowdown affecting various countries.
On Tuesday, the Shanghai composite fell by 0.82 percent and closed at 2,576.65. The Shenzhen composite followed the same trend and fell by 0.813 percent to close at 1,312.55.
The Hang Seng index was also in the negative territory. The Japanese Nikkei went down by 1.82 percent and closed at 21,115.45. Kospi in South Korea fell by 0.43 percent, while Australian ASX 200 with the banking sector witnessing a steep fall.
China was in its 40th year of economic reforms and the Chinese President Xi has spoken on it. He laid importance to the fact that no one could dictate China on what should be done and what should not be done.
Though President Xi Jinping did not provide specific details on what should be done, he called for reform implementation to lead the country ahead. His speech lasted for almost 90 minutes and was addressed to members of the Communist Party.
His address on the economic reforms comes amidst a tense situation, especially with the bitter trade war against the U.S. China has become an economic powerhouse to the world through the implementation of good reforms, says the president.
Investors were keenly watching the speech to scrutinize if the president was ready to ease up on the trade friction with the United States.
Meanwhile, in the U.S., the Dow Jones Industrial Average fell sharply by 507.53 points. It closed at 23,592.98 points. It has taken just two days for the U.S. markets to slump by 1,000 points. Investors are wary of a rate hike expected this week. The market performance this month has been very poor since the 1931 Great Depression.
The Nasdaq was also down by 2.2 percent and closed at 6,753.73 on Monday.