Global Market Turmoil: China Stocks Tumble Amid Economic Uncertainty

China stocks plummeted on Friday, mirroring the global market's reaction to weak U.S. factory activity data. Escalating Middle East tensions and concerns over China's economic recovery further dampened sentiment. The Shanghai Composite index fell by 0.45%, with various other indices also recording declines.

China stocks suffered significant losses on Friday, following a global market downturn triggered by weaker-than-expected U.S. factory activity data. Investors feared an economic slump, compounded by escalating conflicts in the Middle East and ongoing concerns about China's fragile recovery.

Tensions surged as the Israeli military confirmed that Mohammed Deif, head of Hamas' military wing, was killed in an airstrike in Gaza, along with the group's political leader Ismail Haniyeh in Tehran. Additionally, China's economic data painted a gloomy picture, with manufacturing activity sharply declining and second-quarter growth falling short of expectations.

"Global markets have experienced wild swings, with investors flocking to safe assets on expectations that the Federal Reserve may cut interest rates sharply," noted Zheng Yufei, an analyst at Guosen Securities (HK). The Shanghai Composite index dropped 0.45% at midday, reflecting broader market unease.

(With inputs from agencies.)