Asian stocks ended mostly lower on Wednesday following a global rout but Shanghai markets bucked the trend on their first trading day after a week-long holiday.
Disappointing data from Germany, the euro zone's largest economy, hit sentiment overnight. The country reported a shocking 4 percent monthly drop in industrial production for August, the worst reading in over five years.
Furthermore, the International Monetary Fund downgraded its assessment of the global economy. It now expects growth of 3.8 percent next year, down from its July forecast of 4 percent. The fund also said there's a 1-in-3 chance of the euro zone falling back into recession.
Those growth concerns saw Wall Street's three major indices drop more than 1.5 percent each with the S&P 500 hitting an eight-week low. European shares tumbled more than 1 percent each with Germany's Dax index closing at its lowest in nearly two months.
"The market reaction to the downgrading of the 2015 outlook by the IMF may have been the catalyst for the intraday selloff overnight, but it is by no means the only reason for global unease. The use of the term 'frothy' to describe markets didn't help, as valuations are a subjective metric. Talk of overheating, overvalued and ex-growth perpetuates worry," said Evan Lucas, market strategist at IG.