angie: a route or a crisis. asia faces another difficult day as the global stock selloff rolls on. the pictures for you at the .okyo stock exchange supply and demand. oil slides to a 6.5 year low as opec and the u.s. grandpa capacity. -- ramp up capacity. welcome to "first up." i am angie lau.

bloomberg.com.ur markets are getting underway here in asia this tuesday as the chaos continues to roil financial markets globally. david is standing by. how is a looking? david: good morning. we are seeing losses at the open. stocks are icing given the essence he fell into a correction. we are off .6 of one pretend. lows. now it five-year we are getting two-point win some of these and the weakness in these asian currencies is helping some of these equity markets. see how that trades throughout the trading session. nikkei 225, that is down. given the jump in the japanese yen. safe haven trade. the euro and the japanese yen. 124 two weeks ago to 121 yesterday. 116.

one point over. to earlierck down levels. asx 200 down .4 of 1%. west checks is up 38. overnight down 5%. that is something to watch. other than the aussie dollar it for these.de i will break down the markets. let's get to opening levels. something to watch closely.

it will not be surprising. describing what we have seen so far. let's have a look at the bond markets right now. the yields have come down. let's see if that is going the opposite direction. not really. if it is red, still coming down. the 10 year jgb at 35 asus points. -- basis points. u.s. treasuries and you have south of -- south korea and australia. losses not as bad as what we saw yesterday but it is early on in the session. we're tracking everything happening in the markets. back to you. mentioned at the start of the session, pretty much red arrows across the board. we're seeing the pictures from

the tokyo stock exchange where it is trading above 18,000. it is trajectory down as we continue to watch this route $5tinue that has wiped away trillion for investors area commodities are continuing the decline. closing at the lowest level since 1999. us.et tracking this for it is a doozy out there today. : that is the one we look at normally. already. we're seeing a little bit of a pickup in early sessions. hopefully we will get that graph of sand that we are seeing a bit of a game -- a gain coming through in the early session. .ou have these over supplies

let's look at some of the other commodities. copper at 2009 lows. this is regarded as one of the less accrued prices of i .3 of 1% in early trade. a little bit of a redound -- rebound. then copper at 2009 lows. this is the benchmark for commodities because it is one of those widely used metals. we have that at 2009 lows. base metals heavily sold off. zinc was down 3.4%. aluminum was done by 1.8 percent and iron are continuing the slide holding about 53 u.s. dollars a ton. selloff across the commodities board. even the gold price, the safe haven was down by point five of 1%. this will fit some of the prices of the australian stocks that are opening up.

hp down another 1.7% in early trade. caltex one of the major oil prices down lower. the bloomberg commodity index tracks all this. how is looking? juliette: this takes into fromnt the loss or gain holding futures contracts as well as the performance of the commodities. when you look at the gates there reflects the price in changes it was down to its lowest level since 2009. we can say that commodity selloff is coming through everywhere. it has -- even gold is being sort -- sold off. -- bailing feeling out of commodities, not just the equities. angie: joining us now from singapore, the chief asia economies.t mizuho

with this route is reflecting his investor concern about global growth, right? when you look at the fundamentals around the globe, the u.s., china. do you see that it is warranted? is mostly the it concern about the chinese economic slowdown. i think all this demand from china in the past three years, we have seen a clear slow down now from everything in the front car to commodities. they are worried about the chinese slowdown and in addition, the policymakers' ability to arrest the slow down and to be used the economy of china's of people are still getting nervous whether the chinese government can boost the economy as in the past. that is really the most important question facing investors these days. mythicalvestors had a

perception of the pboc and china being able to step into provider floor. we saw shanghai composite drop and keep on going. no policymakers stepped up. china did not do anything about this market rout. do you think the global market rout will continue? can china be the only circuit breaker here? down -- think this all there isdown in china, recovery. the u.s. economy is still recovering and the fed is debating whether the u.s. should tighten monetary policy by hiking interest rates. the u.s. economy is important and also seems to be performing much better. thea, the issue is policymakers in china still are not so worried about the

economic slowdown. that is something also very worrisome. postponede ebsa has cutting the reserve and are not cutting interest rates, even though the economy is slowing down, there is bigger turmoil in the stock market. they're thinking where going to implement the fiscal stimulus policy. we can wait. the investors cannot wait. i see the bigger gap and disconnect there. there is a disconnect. the world is waiting for china to do something with its 3.9 trillion dollars are here. cutcut, interest rate silenced. how much silence can this go on? do you think china at some point this week, next week, couple days, maybe the weekend might

have to step in? guest: definitely. as i mentioned even despite the slowdown, despite the weakness of the market, pboc has not yet cut interest rates in the pasture month. developmentsrket will force the pboc to act. i do see some high probability this weekend and because otherwise justify postponing this policy response and waiting for my it is quite dangerous and risky. the chinese reserves as you point out in the beginning of the year is three point 9 trillion but now it is over 3.6 trillion. 300 billion dollars less. that is a sign that the usa is

putting money away from china. i think including the latest market turmoil will put pressure on chinese policymakers to act quickly. i do see some possibility of this weekend, china will do something. angie: that is a prediction right there. we will leave it there. predicting pboc moves this weekend before it is too late. the story asemain asia reacts to the meltdown. these are live pictures we're showing you from tokyo stock exchange where the global rout is going on. markets are sliding fast over 10 minutes in. nikki to 25 right now, 2.7% down. we have got the topics trading in correction territory. if you take a look across the order as well what you are seeing on the nikkei tune -- nikkei to toy five is a reflection of what we are seeing

in broader markets across the reason. the kospi down and over in australia, as commodities get walt so to do the minors. miners. extending the global rout. in 2.for more an

angie: the sides say they will and them -- resume north said it regretted the winning of two zillow so -- two soldiers.

given three days to form a union -- government. they have until wednesday night to present a workable administration or graceful head to an early election. november 20 is seen as the most likely date. featuring 200 mile an hour winds. several bullet train services have a canceled. left 20 people dead in several missing. in on thek asia-pacific.

it has the below that 18,000 ofk and headed down three the momentum is downward. there does not seem to be a stop in asia at this moment on this global route. 3% down. cost be extending losses as to the commodity producer. equities down more than 1%. -- youining it is predicted the pboc will come in with a cut this weekend to try and stop what we are seeing as an worldwide [indiscernible] but let's focus in on the and mental's of us global out. are concerns about the slowdown in china. you take a look at the numbers. his china slowing down faster than people had originally thought?

guest: definitely. china contributes the most incremental demand. the financialing crisis. tightens started to liquidity. it is in the name of deleveraging. we see the severe crackdown on the shadow banking industry in china resulting into several crises. this year we are seeing fiscal the concern ofto local government borrowing. a slowdown in chinese investment. slowdown is much faster than people expected. also a much faster [inaudible]

realizenow people chinese investment has slowed down very severely. that is the one major reason behind this global concern. the also realized government has started a fiscal program. monetary policy was the devaluation of the yuan to get into the fdr basket. it triggered global route. who expected it really area and the one to started the fiscal program but to two weeks ago they started announcing bond issuance by the policy banks [indiscernible]

meant --ts announcement will take one or two months great we are seeing a gap. that think the people see currents in action are pointing out [indiscernible] see --ument from bpo pboc is after four times rate cuts, pboc maintain the position that liquidity is a pretty sufficient in the chinese domestic market so they do not need to rush to rescue the economy. they are waiting for fiscal .olicy to take a role we are seeing the gaps because fiscal policy is still on the planning side that they just announced this money. allowing banks to lend to local

government. we have not seen the money going to the real economy. that is the issue right now. that remains an issue, one way have talked about for a long time. take a look at japanese markets. correctionentered territory yesterday. even shinzo abe said this goal over two years is in jeopardy because of china. it is almost -- it is that china is exporting a monetary policy volatility. two other central bankers as well. the chinese market has been important for many multinational companies. the slowdown will hurt japanese exports.

has boosted the japanese yen. that will affect their earnings of japanese companies. not only will the chinese slowdown effect mining companies and other developed economies makes me luxury goods to china. that is why the global market has been growing tremendously. it is important that policymakers recognize this important growing role. slowdown thet two economy. it also weakness in the market. angie: we're continuing to watch that weakness today. we will leave it there. thanks for bringing that to us from singapore. next, back to the future for the as it returns to of earlier this

year. the detail and the effects headlines when we continue. ♪

david: welcome back. day two of markets and turmoil. these are the effects headlines. it has been the busiest we for hours in the currency markets in years. investors seeking shelter from

chaos. you're looking at the shots of the board at the took you stock exchange. markets getting an absolute kicking. as much as 4.5%. now up roughly 3% from this time yesterday. from 122, asia waking up to the japanese currency trading at the 118, 119 levels. , you happysite side kiwi and the aussie dollar. 8% to stillfell well below the levels we were at yesterday. to that kiwi dollar. asif felt we are back to levels of april 28, 2009. 71 point five u.s. cents.

what is janet yellen thinking now? the nuisances has emerged that the fed will likely to push back any plan to rate hikes to next year. more ranks are predicting liftoff will be in january or march as market contingent -- conditions deteriorate. as promised i will get you that chart of the kiwi dollar in just a moment. this is about 121 this time yesterday. that is 1/16. at these levels, 118.77. it is understandable why this is the typical interest rate between the yen and japanese stocks are holding quite strongly. wondering if this is [indiscernible] at one point that is an 8.5%

drop which was the biggest in 30 years. it quickly picked back up. 65 u.s. cents here. the kiwi dollar, there you go. 7190 at this point. we are seeing a little bit of a rebound. still lower compared to these levels yesterday. those are your stories driving the forex markets. angie: the -- alibaba falls below its price. another victim of the global slowdown.

angie: it is 830 a.m. in hong kong are you it is a bright day ,utside the dark in the offices on the trading floor. the hong kong stock exchange. that is because this global rout continues. it is extending today. you're watching "first up." and the top stories this hour. stock markets in asia are falling rather this morning as the