Asian stocks report modest declines, Shanghai Composite drops below 100-day MA

  • Asian stocks are tracking the US equities lower. 
  • Risk remains depressed on trade tensions. 

Asian equity markets are flashing red this Thursday morning amid ongoing trade tensions and following the overnight losses on Wall Street.  

Stocks in Australia and Japan are currently down 0.36% and 0.84%, respectively. The Shanghai Composite index is trading 1% lower on the day at 2,855. The index has breached the 50-day MA, currently at 2872, for the third time in 13 days.

In related markets, the Australian government bond yields fell to record lows earlier today, pushing the spread between the 10-year US and Australian government bond yields to a lifetime high of 80 basis points. The anti-risk Japanese Yen has picked up a haven bid. Gold, however, is again struggling to gain ground amid risk aversion.

The US equities slipped on Wednesday, dragging treasury yields lower after news hit the wires that US considered cutting off the flow of vital American technology to five Chinese companies.

Further, the odds for a rate cut fell following the release of the Fed minutes, possibly adding to the bearish tone around the equities. Fed officials judged that their patient approach to changes in interest rates would be appropriate “for some time" and the recent weakness in inflation was due to transitory factors, the minutes revealed.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.


GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.


USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.


Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more