Asian markets decoupled from China’s chaos

FXStreet (Bali) – Asian markets are enjoying improved risk appetite as the decouple from China’s sharp losses takes effect, with Shanghai down by over 5%, while the rest of indices make a vigorous rebound.

Rest of Asia decoupled from China

Excluding China, which as mentioned remains deep in red, green is the colours for the rest of the boards, with the Hang Seng up over 2%, Taiwan +1.7%, ASX +2.1%, the Nikkei has now pared its entire losses to stay flat for the day, while the S&P 500 futures are up by over 2%.

Was Black Monday triggered by China in the first place?

It now seems safe to assume that the panic outside China has receded as market no longer track losses in the Shanghai Composite, which still appears to have plenty of downside room to run. But again, at the end of the day, the sell-off may have had little to do with China as ‘risk-off’ initiator and more to do with the Fed policy stance.

Asian markets are enjoying improved risk appetite as the decouple from China’s sharp losses takes effect, with Shanghai down by over 5%, while the rest of indices make a vigorous rebound.

(Market News Provided by FXstreet)