Asian stocks slip as political/trade catalysts favor risk-off


  • Doubts over US-China trade deal and Hong Kong protests derailed risk sentiment.
  • Less data highlights such qualitative signals for fresh direction.

Be it the trade rift between the US and China or protests in Hong Kong, not to forget the US-Iran tussle, global markets are all disappointed due to the uncertain times that these catalysts offer. As a result, investors prefer risk safety and runoff from Asian equities during early Thursday.

The US President Donald Trump’s tweets and Chinese media took command of challenging the global risk sentiment off-late. Adding to this were the protests in Hong Kong against the Government’s decision to hold a debate on extradition to China that grabbed market attention for the second consecutive day.

As a result, headline Asian shares are in red as indicated by nearly 1% loss of the MSCI’s index of Asia-Pacific shares ex-Japan. It should also be noted that Japan’s Nikkei is down 0.6% by the time of writing.

Further, Australia’s ASX 200 shows little reaction to weaker than forecast unemployment rate as expectations of further monetary easing from China pleased Aussie traders.

Moving on, China’s Hang Seng trims 0.86% due to likely dark days on the trade platform and problems in Hong Kong whereas India’s BSE is also losing around 0.5%.

Overnight, Wall Street also registered losses on trade woes which in-turn dragged the US treasury yield down. The risk barometer currently loses nearly 1.5 basis points to 2.11%.

While political/trade plays are likely to remain present, lack of economic data/event might confine the market momentum.

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.

EUR/USD News

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.

GBP/USD News

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.

USD/JPY News

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

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •