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Asia sell-off intensifies, Nikkei hits 1-month low
FXStreet (Mumbai) - The ongoing rout in the Asian markets extend for the third consecutive session on Thursday, taking the negative lead from the overnight US and the European stocks. While oil prices hovering near six-year lows continued to weigh on the energy and resource stocks.
Stronger yen drags Nikkei lower
The Japanese stocks extend the downward spiral on the back of a stronger yen against the greenback after the Japanese currency remains boosted on upbeat domestic fundamentals and on increased flight to safety. USD/JPY now trades 0.16% higher at 121.60 while the Japanese benchmark index, the Nikkei drops over 1% to 19,057.
The Australian stocks traded deep in the red as the Australian dollar appreciated sharply across the board on unexpectedly stronger Aus jobs report, thereby weighing on the retail and exports stocks. The economy added a net 71,400 jobs in November, driving the jobless rate down from 5.9% in October to 5.8% last month, beating expectations of a rise to 6% in Nov. While the weakness in oil prices also added to the negative sentiment on the index.
On the other hand, Chinese indices bucked the trend once again and enjoyed on the back of a weaker yuan after the Chinese central bank set the yuan midpoint at its weakest since 2011. Australia’s S&P/ASX tanks -1.30% to 5,014. While the benchmark Shanghai Composite (SSEC) rises 0.19% to 3,479. China’s A50 index gains 0.69% to 10,478 points. While Hong Kong’s, the Hang Seng trades muted at 21,784.
Stronger yen drags Nikkei lower
The Japanese stocks extend the downward spiral on the back of a stronger yen against the greenback after the Japanese currency remains boosted on upbeat domestic fundamentals and on increased flight to safety. USD/JPY now trades 0.16% higher at 121.60 while the Japanese benchmark index, the Nikkei drops over 1% to 19,057.
The Australian stocks traded deep in the red as the Australian dollar appreciated sharply across the board on unexpectedly stronger Aus jobs report, thereby weighing on the retail and exports stocks. The economy added a net 71,400 jobs in November, driving the jobless rate down from 5.9% in October to 5.8% last month, beating expectations of a rise to 6% in Nov. While the weakness in oil prices also added to the negative sentiment on the index.
On the other hand, Chinese indices bucked the trend once again and enjoyed on the back of a weaker yuan after the Chinese central bank set the yuan midpoint at its weakest since 2011. Australia’s S&P/ASX tanks -1.30% to 5,014. While the benchmark Shanghai Composite (SSEC) rises 0.19% to 3,479. China’s A50 index gains 0.69% to 10,478 points. While Hong Kong’s, the Hang Seng trades muted at 21,784.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
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