Asian stocks look set to follow US and European markets into a slide on Friday, after a roller coaster Thursday in which China traded for just a wild 15 minutes and other major Asian indexes fell by 1 per cent or more.
SPI futures traded below the ASX 200 index's previous close of 5,010. The Japanese market was also set for a lower open, with the Chicago and Osaka futures traded at 17,620 and 17,760 respectively, below the Nikkei 225's previous closing.
Chinese stocks were suspended from all trade Thursday after the CSI 300 tumbled more than 7 per cent in early trade, triggering the market's circuit breaker for a second time this week.
The Shanghai Composite tumbled 7.32 per cent and the Shenzhen Composite plummeted 8.34 per cent in the 15 minutes when the market traded.
The triggering of the circuit breaker for the second time in four days led the China Securities Regulatory Commission to later suspend the recently implemented market-calming system, a regulatory tool designed limit how far stocks can fall.
Oil prices will also be in focus after US crude futures tumbled to new 12-year lows during overnight trade before paring losses slightly. West Texas Intermediate (WTI) futures finished 70 cents, or 2.06 per cent, lower at $33.27 a barrel while the globally traded Brent was down 45 cents at $33.78 a barrel.
Gold, a safe-haven investment during times of economic uncertainty, hit a nine-week high, with spot prices climbing up to $1,107.80 an ounce.
Major indexes in the US shed over 2 per cent each overnight. The Dow Jones Industrial Average was down 392.41 points, or 2.32 per cent, at 16,514.10. The S&P 500 closed down 47.17 points, or 2.37 per cent, at 1,943.09 while the Nasdaq Composite saw losses of 146.34 points, or 3.03 per cent, at 4,689.43.