Asian stocks cap the rebound – turn lower, Shanghai fades early spike

By FXStreet FXStreet (Mumbai) – Asian indices are seen trading in extremely volatile conditions with most benchmarks opening lower amid risk-off extended from last week after Friday’s not so auspicious payroll data weighed on market sentiment.

However, major shift in risk-sentiment was witnessed after China re-opened after a four-day break with solid gains driving its Asian counterparts higher, only to fade a minor rebound and turn back in the red zone as traders still digest the recent concerns over global economic prospects after the ECB turned outrightly
dovish and amid persisting Chinese slowdown fears.

Nikkei rejected at 18k marker

The Japanese benchmark index, the Nikkei gave back gains and resumed its downside bias after facing strong hurdle at 18k levels, despite a relatively weaker yen which underpins exporters’ stocks. USD/JPY now trades at 119.35, up 0.29% so far while Japan’s benchmark index, the Nikkei edged lower by -0.36% to 17,727.

The Chinese benchmark index, the Shanghai Composite faded its early rebound and returned in the negative zone, now trading modestly flat at 3,162 points while the Hong Kong’s benchmark Hang Seng index also erased early gains and trades -0.43% lower at 20,748.

Among other Asian indices, the benchmark Australian S&P/ASX 200 index remained in red …read more

Source:: FX Street