FXStreet (Mumbai) – The stocks on the Asian bourses turned into the negative territory for the first time in five days this Tuesday, tracking subdued close on the Wall Street. While almost 6% slump in oil prices overnight as well as weak Chinese manufacturing data also weighed negatively on the investors’ sentiment.
Chinese equities witness a profit-taking rally
The Japanese benchmark index, the Nikkei 225 trades marginally lower around 17,850 points as the risk-aversion, triggered by China factory report and the resultant fall in oil prices, continues to underpin the safe-haven yen. Hence, the exporters’ stocks suffer due to broad yen strength, while the energy and resource stocks are also trading with size-able losses. Meanwhile, USD/JPY falls -0.16% to 120.80.
The Australian markets also are also seen paring losses, with the ASX 200 index losing -0.35% to trade at 5,025, just an hour before the RBA cash rate announcement. It’s widely expected that RBA will keep the cash rate unchanged at record low of 2% today, although Governor Stevens comments on the AUD level and inflation outlook will be closely heard in wake of the recent global markets turbulence.
While the Chinese equities rebounded after yesterday’s weak PMI-led slide as the central bank continue its liquidity injections before the Lunar New Year. The benchmark Shanghai Composite index rallies +1.22% at 2,721. Shenzhen’s CSI 300 index jumps +1.69%, while China A50 index rises +1.36%.
(Market News Provided by FXstreet)