Asia risk-off extends on Brexit woes, ASX 200 tanks -2%

Dhwani Mehta FXStreet

Risk-off sentiment continues to dominate the Asian markets for the second day today, with investors spooked by intensifying Brexit fears after the latest UK’s EU referendum polls revealed vote-favouring the Leave campaign with significant lead.

Moreover, renewed weakness in the oil prices also hurt the energy sector stocks, while a relatively stronger yen weighs negatively on the exports-oriented stocks on the region’s indices.

ASX 200 leads Asia sell-off

The Japanese benchmark index, the Nikkei 225 extends sell-off and now dives -1.25% to trade below 16k levels, as USD/JPY surrenders 106 handle once again, losing -0.24%. The Australian markets ignored upbeat Aus NAB business conditions data, as weaker oil prices weighed on the resource, mining and energy stocks. The ASX 200 index slumps -1.95% to 5,211 levels.

While the Chinese equities ditched their Asian peers and traded modestly higher, with the benchmark Shanghai Composite index gaining +0.08%, the CSI300 index trades +0.15%. Hong Kong’s Hang Seng trades muted above 20,500 points.

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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