The Chinese CSI300 index fell seven per cent on Monday, triggering a mechanism that halted trading in the Chinese sharemarket.
The sharemarket again opened lower on Tuesday, but it had recovered to its previous close by mid-afternoon. The ASX 200 index fell 1.7 per cent by the close of trade on Tuesday.
Matt Sherwood, Perpetual's head of investment strategy for multi assets, said market concerns in China were reinforced by weak manufacturing PMIs in China and the US.
The Caixin manufacturing PMI fell to 48.2, which was lower than the market was expecting.
"[That] had investors worried about the sustainability of earnings expectations, which remain upbeat relative to the subdued economic climate," Mr Sherwood said.
"There are three factors which are constraining global growth – high debt, changing demographics and disruptive technology. I remain resolute in my view that nominal growth is scarce in the world, and is likely to stay that way, despite consistent flawed forecasts of an impending improvement by central banks," he said.
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