US equity index futures turn red as Shanghai Composite drops 1.5%

• Equity sell-off continues in Asia.
• Shanghai Composite drops 1.5%, Hang Seng down 3.2%.
• US S&P 500 futures turned negative.

Equity markets in Asia are taking a beating following the 1000-point drop in the Dow index yesterday.

China's Shanghai Composite Index opened on a weaker note (down 1.5%). Meanwhile, Hong Kong's Hang Seng index is down 3.2 percent.

S&P 500 futures, which were up about 0.20 percent in early Asia, have been dragged lower by the losses in Chinese equities. Currently, the futures are down 16 points or 0.62 percent. Consequently, the USD/JPY pair has dipped below 109.00 levels and the 10-year treasury yield is on the back foot at 2.72 percent.