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Asian stocks slide amid rising geo-political tensions

FXStreet (Mumbai) - The stocks on the Asian bourses extend losses from the previous session, shrugging off a positive close on the Wall Street overnight, as investors fretted over escalating geo-political tension in the Middle-East after a Russian fighter jet was shot down by Turkey near the Syrian border on Tuesday.

Adding to the negative sentiment, worldwide travel alerts were issued by the US over potential increase in terrorism threats.

Nikkei faces double whammy

The Japanese markets extended weakness into a second day and received double blow after renewed risk-aversion wave hit markets while a stronger yen versus the greenback hurt the exporters’ stocks. USD/JPY drops -0.20% to 122.27 while the Nikkei loses -0.52% to trade at 19,822.

The Australian benchmark, the S&P/ASX came under renewed selling and drops -0.52% to 5,198 points, weighed down by heavy losses in banking and airline stocks. However, capping the downside in the index, the resource stocks are trading higher on the back of the ongoing recovery in commodity prices.

While the Chinese indices also follow suit and keep losses, with Shanghai Composite (SSEC) muted around 3,615. China’s A50 index declines -0.60% to 10,574 points. Hong Kong’s Hang Seng loses -0.46% to 22,483.

US Dollar under pressure across the board

Today's US Dollar performance during Asia is a re-play of what we witnessed during the same time last Tuesday, with broad-based weakness in the currency dominant ahead of US Thanksgiving on Thursday, with weakness not being attributed to any particular fundamental drivers.
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USD/JPY heading towards key support at 122.20

The rising threats to global security paired with heightening geopolitical risks kept the demand for safe-havens intact, thereby driving the Japanese yen to fresh one-week high on 122 handle.
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