DHAKA: Global markets made big losses after Chinese trading was suspended twice last week on dramatic plunges in values that triggered a circuit breaker mechanism, and spurred more volatility.

China suspended the use of that tool on Friday, a move that reassured traders, reports the BBC.

But the Shanghai Composite index was down 2.5% to 3,106.38 in early trade.

Weak inflation data over the weekend did little to encourage investors.

China's consumer inflation edged up 1.6% in December from a year ago. That compared to a 1.5% rise in the previous month.

But deflation risks remained in the world's second largest economy as factory-gate prices continued to fall for the 46th consecutive month, down 5.9%.

Hong Kong's Hang Seng index fell 2.4% to 19,964.64, following the mainland markets.

"It feels as though we are right in the epicentre of the fear, panic and confusion in global markets," said Chris Weston, market strategist at trading firm IG in a note.

BDST:  1000 HRS, JAN 11, 2016
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