Global Stocks: U.S. indices fell

U.S. stock indices fell on Tuesday amid a slump in commodity prices and persistent uncertainty regarding Federal Reserve's rate hike.

The Dow Jones Industrial Average plunged 179.72 points, or 1.1%, to 16,330.47 after an initial decline of 288 points. The S&P 500 fell 24.23 points, or 1.2%, to 1,942.74. The Nasdaq Composite Index lost 72.23 point, or 1.5% to 4,756.72.

Data showed on Tuesday that the Richmond Fed Manufacturing Index fell to -5 in September from 0 in August; economists had expected it to advance to +4. "Order backlogs and new orders decreased, while shipments declined. Average wages continued to increase at a moderate pace this month, however manufacturing employment grew mildly. Prices of raw materials and prices of finished goods rose, although at a slightly slower pace compared to last month. Manufacturers anticipated improved business conditions during the next six months. Producers expected faster growth in shipments and in the volume of new orders," Fed overview said.

This morning in Asia Hong Kong Hang Seng dropped 2.98%, or 650.27 points, to 21,146.31. China Shanghai Composite Index fell 2.16%, or 68.72 point, to 3,116.90. Japanese markets are on holiday.

Asian stock indices fell after a preliminary report from Markit Economics and Caixin Media showed that China's manufacturing sector had fallen to a six-and-a-half-year low of 47.0 in September. Economists had expected a 47.5 reading after 47.3 reported previously.