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The sell-off pushed the Shanghai and Shenzhen CSI 300 index down by 3.4%, leaving the wider Shanghai composite index down by 2.5%.
Earlier came a disappointing Chinese purchasing managers index, down from a prelimary estimate for September of 50.5 to 50.2.
Tech stocks have underwhelmed lately, with the Nasdaq index down 6.6% for the year.
The disappointing numbers came from both the Empire State Index (down to 5.08 from 19.57) and the Philadelphia Fed Index (down to 5.1 from 8 a month ago), and dinged industrial names like Caterpillar, which lost 0.3%.
The Gap's problems weighed on other retailers, helping to pull the S&P's Retail Index down 3.7% on the day.
That's hurting the whole tech sector, sending the tech-sensitive Nasdaq Composite Index down 0.6% around lunchtime in New York.
500 index down as much as 49.1percentt in the three-year sell-off and the Nasdaq composite index down 77.9percentt.
News of the scandal sent the Sensex index down 7percentt on Wednesday.
The morning sell-off sent the technology-heavy Nasdaq index down 217 points, or 6.4percentt.
Lloyds shares were the biggest fallers in the FTSE 100 index, down nearly 4% to 80p.
The decline helped push the main Jakarta stock index down 1.7percentt for the day.
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