Risk-off in full swing, Yen strongest in Asia, German CPI – Up next

By FXStreet FXStreet (Mumbai) – A volatile Asian session, despite an empty macro-calendar, as risk-aversion hit Asia and diminished the demand for riskier assets. The safe-havens such as the yen, the Swiss franc, the euro and bonds emerged the biggest beneficiaries of the intensifying risk-off flows.

Key headlines in Asia

Asian stocks tumble, global sell-off extends on China fears

Fed’s Williams: Economy can handle start of rate hike process

Dominating themes in Asia – centered on JPY, AUD, NZD

Equity sell-off hit Asia, with Asian stock markets in the deep red following heavy losses on Wall Street and European indices. Markets turned highly risk-averse as Monday’s Chinese industrial profits data re-ignited China slowdown fears, thus sending riskier assets sharply lower across the board. While the uncertainty over the Fed rate hike timing also weighed on the investors’ sentiment.

Although, the ongoing global rout boosted the demand for safe-haven assets as investors flock to safety-asset in times of turmoil and uncertainty. The Japanese yen was the biggest gainer amongst the safe-havens, with USD/JPY losing -0.34% to 119.50, notwithstanding 120 handle. While EUR/USD rises 0.16% to 1.1260, the Swiss franc is gaining 0.18% against the greenback. While gold remains almost unchanged near $ 1131, unresponsive to the risk-off …read more

Source:: FX Street