FTSE retreats towards 6,500 after heavy sell-off in Japan

London's leading share index has started the week firmly lower, with global sentiment knocked by worse than expected Chinese manufacturing data which had already sparked yet another slump for Japan's stock market.

China's manufacturing industry, one of the biggest drivers of economic growth for the country, contracted in May due to deteriorating demand. The country's manufacturing purchasing managers' index (PMI) stood at 49.2 for May, worse than the initial 49.6 estimate, and below April's 50.4 reading. Any reading below 50 means the sector is contracting. The disappointing data weighed on Asian markets overnight, prompting another sharp fall for the Nikkei which fell 3.7% to 13,261 amid fears a slowdown in Chinese manufacturing could derail global growth. This morning losses have been m...