FXStreet (Mumbai) – Most Asian indices have slipped in to the negative territory this morning tracking negative close on Wall Street overnight as a sharp drop in Chinese stock prices late on Tuesday dampened the sentiment across the board.
China’s stock market crashed more than 6% on Tuesday and extends the downslide in Asia on Wednesday as markets assess the impact of the yuan devaluation amid the ongoing slowdown in the Chinese economy.
ASX bucks the trend, rebounds after Tuesday’s drop
Chinese authorities left the yuan reference rate little changed on Monday. China shook markets last week when the authorities unexpectedly devalued the Chinese yuan by close to 3%.
The Japanese benchmark Nikkei 225 is losing -0.52% at 20448. While Korea’s benchmark Kospi index pared losses and now trades -1.68% at 1,923 points in Seoul.
Chinese stocks extend declines as markets now anticipate that the Chinese authorities would not intervene to support the stock markets this time around. The Hong Kong’s benchmark Hang Seng index losing -1.34% at 23159 while mainland China’s benchmark Shanghai Composite keeps falling and is now down -3.25% to trade at 3628.
While the benchmark Australian S&P/ASX 200 index rebound today, reversing previous losses helped with resource and banking shares helping to push the markets back up. The index pared gains and trades 0.80% higher at 5345 points.
(Market News Provided by FXstreet)