Shanghai sell-off deepens, drags rest of Asia lower

By FXStreet FXStreet (Mumbai) – The stocks on the Asian bourses trade in the red, with the losses accentuated by the renewed sell-off in the Chinese equities.

Asian indices kicked-off this week on a bearish note, tracking the poor performance on the Wall Street last week and concerns over China’s ability to boost the economic growth. Meanwhile, markets ignored the yuan firming up for the second consecutive session.
China slowdown concerns resurface

The Chinese benchmark, the Shanghai Composite index remains volatile, extending the initial drop and now trades nearly 3% lower, largely weighed down by the poor Chinese inflation data released over the weekend and comments from a top state adviser. China’s CPI rose 1.6% y/y in December, against a rise of 1.7% forecast by markets, and well below the government’s target of around 3.0%.

While China A50 index tanks -1.95% and the CSI 300 index ticked loses over 1.50%. While Hong Kong’s Hang Seng sinks -2.88% and surrenders 20k barrier for the first time since June 2013.

Among other Asian indices, the Australian stocks were heavily smashed on continued to decline in the oil and base metal prices, hurting the energy and resource stocks big time. While the Japanese stocks also …read more

Source:: FX Street