Shanghai and Taiwan Markets Crushed Overnight on More Evidence Chinese Bank Authorities Are Tightening Money Supply

Several Chinese banks have ordered some branches to suspend new lending for the rest of this month, people familiar with the situation said on Tuesday, according to WSJ.

The Shanghai Composite and Hong Kong's Hang Seng Index each fell 2.4%, while Taiwan's Taiex dropped 3.5%, on the continued indications of money tightening by China's central bank.

Other Asian markets also fell Japan's Nikkei 225 Average was down 1.8% and South Korea's Kospi fell 2%. Markets in Australia and India were closed for public holidays