Asian stocks follow Wall Street as risk aversion regains market attention
|- Worries concerning trade/politics follow Wall Street losses to weaken the Asian shares.
- Lack of data highlights qualitative catalysts for fresh impulse.
With the early-day trade/political jitters following pessimism spread through Wall Street close, Asian shares remain on a back foot before the European traders arrive on Thursday.
Not only sluggish housing market data from the US but weak results from trade-related CSX Corporation and the Federal Reserve’s Beige Book also stoked fears emanating from the US-China trade standoff.
As a result, all the three major US indices registered a negative daily closing wherein the S&P 500 was a frontrunner with -0.65% loss.
Not only US-China trade stalemate but an unexpected rate cut by the Bank of Korea, citing fears of trade tussle with Japan, also favored the market’s risk-off mood.
The macro risk gauge, 10-year treasury yield of the US, dropped 8 basis points (bps) on Wednesday while losing close to 2 bps at the time of writing.
Following the momentum, the MSCI’s index of Asia-Pacific shares ex-Japan eases close to 0.3% by the press time whereas Japan’s Nikkei is -1.81% in red while writing. Further, South Korea’s Kospi Composite is down -0.38% while China’s Hang Seng trims nearly 0.5%. Moving on, Australia’s ASX200 is losing -0.38% on the back of sluggish employment data whereas India’s BSE Sensex also drops around 0.2%.
Looking forward, UK Retail Sales and political drama at the House of Commons, coupled with the trade/political news concerning the US, could offer fresh impulse to traders.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.