SHCOMP drags Asia lower, Nikkei bucks the trend

By FXStreet FXStreet (Mumbai) – Asian markets continued to trade in the red on Wednesday following the sell-off on the Wall Street overnight while the Chinese stocks rout extends amid mounting concerns over China’s economic slowdown.

Weaker China manufacturing PMI data sparked new concerns over the strength of the world’s second-biggest economy and sent stock markets in the US down more than 2% on Tuesday as investors opted out of risky assets.

Nikkei poses modest recovery

However, stocks on the Japan’s bourses ditched their other Asian counterparts and rebounded higher after the two back-to-back sessions of losses. Exporters found some respite after facing sharp losses earlier this week as the US dollar managed to pull back some overnight losses to trade around 120 handle during mid-Asia, +0.52% on the day. The Japanese benchmark Nikkei 225 is gaining 0.79% at 18309.

Among other Asian indices, the Shanghai Composite index drops -2.75% to 3,079 points. The Hong Kong’s benchmark Hang Seng index loses -1.57% at 20,854, the benchmark Australian S&P/ASX 200 index is down -1.27% at 5,031 with oil stocks leading declines after China’s manufacturing data weighed on oil futures overnight. Korea’s benchmark Kospi index now trades -0.49% at 1,904 points in Seoul.
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Source:: FX Street