SYDNEY, Aug 24 (Reuters) - Australian shares are set to drop on Monday, following a selloff in global equity markets on fears of a sharp economic slow down in China.
Local share price index futures YAPcm1 slipped 2.1 percent to 5,058, a 156.6-point discount to the close of the underlying S&P/ASX200 index on Friday. The benchmark skidded to an eight-month low in the last session to end the week 3-percent lower.
Company earnings are in full swing with Fortescue Metals Group FMG.AX , Lend Lease Group LLC.AX , Caltex Australia CTX.AX out with their results.
Investors will particularly watch the first annual results of South32, BHP Billiton (LONDON:BLT) BHP.AX's spin off. BHP's dropped 1.5 percent on Friday.
New Zealand's benchmark NZX 50 index fell 2 percent in early trade.