Futures Are Falling As Asian Markets Dive

Markets are selling off around the world after a particularly nasty session in Asia.

Japan's Nikkei fell nearly 2% during trading hours, and futures continue to slide even now.

The Shanghai composite lost 1.25%.

Korea lost 1%.

The big negative headline is that a major Chinese bank is tripling its writeoffs for bad debts, as it anticipates a bigger wave of defaults, something which speaks to unease over Chinese credit quality.

Meanwhile, short-term money rates are also tightening, as it appears Chinese regulators are looking to stamp out inflation and speculation again.

In addition to the China stuff, Japan's market is not appreciating a big spike in the yen against the dollar, which may have something to do with the perception that that the Fed's "tapering" has now been pushed a long way off, both thanks to the government shutdown and yesterday's mediocre jobs report.

US futures are down over 0.5% across the board.

In Europe, Italy is down 1.3%. Germany is off 0.5%.