Asian stocks drop as sentiment hit on lower commodities

By FXStreet FXStreet (Mumbai) – The stocks on the Asian bourses snapped previous gains and turned in the red zone on Tuesday, following the weak cues from Wall Street overnight and European markets. Moreover, lower commodity prices also dampened investors’ sentiment and dragged the resource stocks lower.

China stocks – worst performer in Asia

The Japanese markets re-opened after a holiday on a weaker note as a relatively stronger yen versus the US dollar weighed on the exports-oriented stocks.
Moreover, investors resorted to lock-in gains after last week’s extensive rally amid lack of significant economic news. USD/JPY trades marginally lower at 122.80 while the Nikkei trades -0.08% lower at 19,863.

The Australian benchmark, the S&P/ASX remains pressured, losing -0.34% to 5,258 points, largely on the back of losses in the mining, resource and financial stocks. The recent rout in the commodity space, with base metals, oil and gold prices trading at multi-year lows, heavily weighed on the miners.

While the Chinese indices trade sharply lower, with Shanghai Composite (SSEC) declining -0.76% to 3,582. China’s A50 index drops over 1% to 10,558 points. Hong Kong’s Hang Seng loses -0.81% to 22,485.
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Source:: FX Street