Asian stocks drop as risks resurface
- Asian stocks report losses as investors take note of risks from Turkey and North Korea.
- Risk aversion put a bid under the Japanese Yen.
Asian stocks dropped on Wednesday as investors took note of the renewed geopolitical tensions.
Scorecard
- Japan's Nikkei index is down 1.24 percent
- Stocks in Australia and New Zealand are reporting 0.24 percent and 0.44 percent, respectively.
- Shanghai Composite has lost 0.80 percent.
- Hong Kong's Hang Seng has shed 1.13 percent.
US stocks turned red yesterday after President Trump cast doubt on a possible summit with North Korea.
Investors also turned cautious after Trump said he is not pleased with recent trade talks between the United States and China, thus pouring cold water over the optimism generated by the US and China's decision to abstain from imposing punitive tariffs.
The risk-off tone in the equities also put a bid under the anti-risk Japanese Yen. Thus, USD/JPY fell to a key rising trendline support.
Meanwhile, the major European equity index futures are trading mixed. Germany's DAX futures are trading flat to negative while France's CAC futures are up 0.12 percent.
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
