The fact that the Shanghai Composite is closed for the holiday is probably a good thing given the lead from the US markets and the local data including foreign reserves numbers released over the weekend.

China's determination to prop up the yuan meant its foreign reserves fell a further US$99.5 billion in January to US$3.23 trillion.

The fall almost matched the record US$107.9 billion posted in December.

Foreign reserves declined by half a trillion dollars in 2015, the first annual decline on record.

On Friday the Shanghai Composite fell 0.6%, giving up earlier gains after the official manufacturing PMI fell for a sixth straight month to 49.4 in January from the December figure of 49.7.

The Hang Seng traded up 0.5% . Hong Kong is closed until Thursday.

The Nikkei posted yet another fall; this time by 1.3%.

European markets were stronger on the open but quickly turned negative after the US payroll report and as US markets sold off.

The DAX closed down 1.1% after German factor orders fell 0.7% in December.

Economists had called for a 0.5% fall.

Overall the Stoxx 600 fell 0.9%

In the US the Labor Department announced non-farm employment rose by 151,000 jobs in January. That compared to estimates of around 190,000.

The unemployment rate fell to 4.9 from 5%.

Concerns over earnings in the tech sector continued to weigh on those stocks and the Nasdaq.

Linkedin shares fell 43% after issuing weak guidance.

Amazon and Facebook each fell around 6% and Apple was down 2.7% .

The Nasdaq Biotechnology ETF fell 3.2% to pace the decline of 3.2% in the Nasdaq overall.

WTI crude fell 2.6% to close at US$30.89 a barrel despite a 31 rig fall in the oil rig count for the week.

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