OctaFX | OctaFX Forex Broker
Open trading account

Asian stocks slide as sentiment sours on China CPI

FXStreet (Mumbai) - The sentiment surrounding the Asian indices took another hit on Wednesday after the softer Chinese inflation print triggered a renewed wave of risk-aversion.

Stocks on the Asian bourses had a negative start, taking the negative lead from the Wall Street and decline in the oil prices overnight.

Weak China CPI adds to the risk-off slide

The Japanese stocks are trading deep in the red, extending the previous drop, mainly driven by worsening risk conditions after the Chinese data disappointed once again. The yen gained versus the US dollar on increased safe-haven bids, thereby dragging exports stocks lower. Meanwhile, USD/JPY trades -0.07% lower at 119.65 and the Nikkei falls -1.70% to 17,924 points.

The Chinese stocks traded mixed with the local data heavily weighing on the indices. China CPI rose 1.6% y/y in September, shy of forecasts for an increase of 1.8% and down from 2.0% in August. The benchmark index, the Shanghai Composite trades muted at 3,295. While Hong Kong’s Hang Seng drops -0.57% to 22,472.

The Australian benchmark, the S&P/ASX trades marginally lower by -0.23% at 5,191, with banks and oil stocks are among the leading decliners.

USD/JPY attempts tepid-recovery towards hourly 50-SMA

The USD/JPY pair founds fresh bids just below 119.50 levels, where the daily S1 coincides, and attempted a tepid-recovery amid persisting risk-off moods.
Read more Previous

China: Moderate fiscal stimulus coming as exports improve, imports weaken - Nomura

Research Team at Nomura, suggest that after the lacklustre growth outlook, we continue to expect moderate fiscal stimulus from the central government and continued monetary easing, with one more reserve requirement ratio cut in Q4 and another four in 2016 (each by 50bp), together with two more benchmark interest rate cuts (each by 25bp) in 2016.
Read more Next
Start livechat