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31 Aug 2015
China stocks back in the red on fading state-support, drags Asia lower
FXStreet (Mumbai) - Asian markets halted their recovery mode and kicked-off the week on a softer note, led by a renewed wave of risk-aversion triggered by tumbling Chinese stocks. While markets remain cautious ahead of the key US data due later this week, the non-farm payrolls, which may provide hints on the timing of the Fed rate lift-off.
Risk-off sentiment re-emerges on falling Chinese equities
Japan’s stocks are seen in the negative territory as investor sentiment was dampened by the lackluster cues from Wall Street and weak Japanese industrial output data. While a stronger yen amid risk-off moods also weighed on the exports stocks, dragging the index lower. The USD/JPY cross hovers above 121 barrier during mid-Asia, -0.51% on the day. The Japanese benchmark Nikkei 225 is losing over 1% at 18935.
The negative performance of the Asian indices on Monday can be attributed to the drop in Chinese stocks after risk-off sentiment resurfaced amid reports that Chinese authorities have decided not intervene in order to prop up the stock markets, “instead intensify efforts to find and punish those suspected of "destabilising the market."
The Shanghai Composite index drops -3.31% to 3,125 points. The Hong Kong's benchmark Hang Seng index loses -1.08% at 21,388. Among other Asian indices, the benchmark Australian S&P/ASX 200 index is down -1.30% at 5,195 with Australian oil and gas miners down sharply on China woes. Korea's benchmark Kospi index now trades -0.46% at 1,928.50 points in Seoul.
Risk-off sentiment re-emerges on falling Chinese equities
Japan’s stocks are seen in the negative territory as investor sentiment was dampened by the lackluster cues from Wall Street and weak Japanese industrial output data. While a stronger yen amid risk-off moods also weighed on the exports stocks, dragging the index lower. The USD/JPY cross hovers above 121 barrier during mid-Asia, -0.51% on the day. The Japanese benchmark Nikkei 225 is losing over 1% at 18935.
The negative performance of the Asian indices on Monday can be attributed to the drop in Chinese stocks after risk-off sentiment resurfaced amid reports that Chinese authorities have decided not intervene in order to prop up the stock markets, “instead intensify efforts to find and punish those suspected of "destabilising the market."
The Shanghai Composite index drops -3.31% to 3,125 points. The Hong Kong's benchmark Hang Seng index loses -1.08% at 21,388. Among other Asian indices, the benchmark Australian S&P/ASX 200 index is down -1.30% at 5,195 with Australian oil and gas miners down sharply on China woes. Korea's benchmark Kospi index now trades -0.46% at 1,928.50 points in Seoul.