Nikkei 225: Selling Intensifies as Yen Sinks, Rest of Asia Lower
The Japanese stocks dive deeper into the red, extending losses from opening trades, as demand for the yen remains on the rise amid intensifying risk-off sentiment, after the sales-tax hike delay news re-ignited concerns over the Japanese economic prospects.
Moreover, mixed trading activity seen across the commodities’ space, further added to the downward pressure on the Asian equities, dragged lower by their Japanese counterpart.
Nikkei slumps on stronger Yen
The Japanese benchmark index, the Nikkei 225 now sinks -2.30% and hovers around 16,560 levels as USD/JPY drops to fresh two-week lows below 109 as markets react negatively to PM Abe’s decision on the sales tax hike delay by 30 months until late 2019..
Australia’s ASX 200 index slumps -0.90% as mixed Australian economic releases weighed on the investors’ sentiment. Australia Retail Sales for April came in at +0.2% m/m versus +0.3 previous, although missed expectations of +0.3%. While April trade deficit decreased to 1.579mln versus expected deficit of 2100mln, as compared to -216mln last.
While the Chinese equities waver between gains and losses, with the benchmark Shanghai Composite index now trading modestly flat just above 2900 levels, the CSI300 index trades muted around 3,160 points. Hong Kong Hang Seng gains 0.22%.