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Asian stocks tumble, global sell-off extends on China fears

FXStreet (Mumbai) - Stocks on the Asian bourses plunged on Tuesday, tracking the negative lead from Wall Street overnight and the European markets, amid escalating worries over the health of the Chinese economy. While the sell-off in the commodity space also weighed on the resource stocks.

Moreover, markets also digest the latest Fed speeches with majority of the Fed officials favouring a rate-hike this year. Meanwhile, Fed Chairwoman Yellen’s speech due tomorrow is eagerly awaited.

Nikkei – the main laggard

The Japanese benchmark, the Nikkei keeps falling as the yen continues to strengthen versus the greenback on risk-aversion, dragging the exports’ stocks sharply lower. At the moment, USD/JPY trades -0.25% lower at 119.63 while the Nikkei drops -3.60% to 17,011.

The benchmark Australian S&P/ASX 200 reversed previous rally and dives deep in the red, with mining and oil stocks driving the index lower. The index now tanks -2.88% to 4,967 points.

The Chinese markets followed suit, with the Shanghai Composite dropping -1.84% at 3,043 points. While Hong Kong markets re-opened in the red after the Mid-Autumn festival holiday, losing -3.45% to 20,420.

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After bottoming near 119.50 levels in early Asian hours, the USD/JPY pair recovers partial losses and keeps range around 119.70 as the Japanese yen remains well bid on the back of falling Asian equities
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JPY downside and CHF upside in the offering – Danske Bank

Christin Tuxen, Senior Analyst at Danske Bank, notes that the latest IMM data that covers the week from 16 September to 22 September 2015 is indicating that there is a room for JPY downside and CHF upside.
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