Tokyo’s main index falls back below the 200-day moving average
Asian equities are pretty much on the back foot today as Wall St gains seen on Wednesday began to fade with the S&P 500 having closed lower by 0.3% overnight. The flat sentiment in futures to begin the day isn’t helping and so is the Fed’s decision to maintain their resolve to hike at every other meeting.
That’s putting pressure on Asian stocks to begin the day and Japanese stocks are no exception to that. The Nikkei closes near the lows with the Hang Seng index also trading 2.5% lower with the Shanghai Composite down by 1.2% currently.
The sentiment here is what is helping to weigh down yen pairs as we head into European trading. And with focus back on the Fed and rates, the softer tone in equities should spill over to European equities as well.