1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

Nikkei leads the slump in Asian stocks amid oil rout

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Mumbai) - Risk-off sentiment from the last US session intensified in Asia as the Asian equities tracked the negative close on the Wall Street overnight, while the return of the oil rout to markets weighed heavily on the region’s indices.

    Sentiment sours amid oil sell-off


    The Japanese benchmark index, the Nikkei 225 plunges -3.30% to 17,166 points as risk-off trades continue to dominate after oil prices slumped almost 7% overnight and squashed hopes of a rebound in the black gold. Auto and mining stocks suffered heavily, and dragged the index lower. Further a stronger yen also continue to weigh on the exports stocks, with USD/JPY down -0.30% at 119.60. Also, the BOJ minutes released earlier today showed no plans for negative interest rates at this point, which also added to the downside in the index.

    The Australian markets also nose-dives, with the ASX 200 index losing -2% to trade at 4,893. The heavily weighted banking stocks led the decline in the local equities, with the National Australia Bank (NAB) sliding more than 5% after settling the terms of its divestment of UK-subsidiary Clydesdale and Yorkshire Banking Group. Markets were also disappointed by the weak trade figures, which revealed mineral exports fell sharply in Dec.

    While the Chinese equities also joined the global sell-off, despite another round of liquidity injections by the PBOC today. The benchmark Shanghai Composite index tanks -1.56% at 2,700. Shenzhen’s CSI 300 index drops -1.47%, while China A50 index slips -1.73%.
    For more information, read our latest forex news.
     

Share This Page