FXStreet (Mumbai) – Asian equities snapped their previous rebound and fell back into the negative territory on Wednesday, tracking a subdued performance on the Wall Street overnight. While renewed sell-off in the black gold also spooked markets once again, with investors running for cover at the expense of risky assets such as the equities.
Oil rout returns and re-ignites risk-off
The Japanese stocks dropped sharply this session and fell to their lowest levels since Sept, as global growth concerns combined with oil rout dampen investors’ sentiment. Moreover, rising demand for the safe-haven yen also hits exporters’ stocks badly, while falling commodities’ prices drags the resource and energy stocks lower. Meanwhile, USD/JPY trades -0.26% at 117.34 and the Nikkei drops -1.66% to 16,766.
The Australian stocks also tracked their Asian counterparts lower, with the S&P/ASX 200 index now losing -0.50% to 4,878. The mining companies and energy producers lead the declines in the index on lower commodities and rising China slowdown concerns after the world’s second largest economy grew at the slowest pace in 25 years.
The Chinese markets fluctuate between gains and losses, although risks remain to the downside on the back of a renewed wave of risk-aversion. The Shanghai Composite index trims gains and now trades marginally lower just ahead of 3k mark, Shenzhen’s CSI 300 index trades -0.26%. While Hong Kong’s the Hang Seng remains heavily sold-off, down -2.56% at 19,138.
(Market News Provided by FXstreet)