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Bouts of risk aversion hit Asian stocks

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Bali) - There has been a substantial worsening of sentiment during the Asian session, with bouts of risk aversion sending regional stocks sharply lower, while no specific catalyst has been attributed to the moves.

    The Shanghai Composite is down by more than 2%, despite the short term structure still suggest buying interest is likely to re-emerge, while the Nikkei 225 is down by over 0.7%, with safe-haven bids having accelerated in recent minutes. The selling in the USD/JPY, also weighed by month end Japanese exporter sales, may have impacted sentiment.

    FOMC, BOJ warrant caution

    Traders and investors in Asia have chosen not to take further risk ahead of the risk events coming up this week. The FOMC, due on Wednesday US afternoon, remains between a rock and a hard place unable to raise rates amid weakening economic indicators, while the Bank of Japan policy meeting, due on Friday, is expected to refrain from further easing for now, despite the pressure to stimulate inflation in the country keeps on growing.
    For more information, read our latest forex news.
     

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