Asian markets erase early gains, back in the red on risk-off

FXStreet (Mumbai) - Asian stocks edged higher in early moves tracking the overnight gains on Wall Street as well as the rebound in oil and gold prices. However, the gains were quickly wiped as risk-off sentiments resurfaced across the board following PBOC’s latest Yuan depreciation move.

Risk-off weighs on Asian stocks

The Japanese benchmark Nikkei 225 is losing -0.51% at 20695. While benchmark Australian S&P/ASX 200 index trades -0.58% lower at 5477 points, as the Chinese central bank’s changes in the Yuan fix poses a double whammy for the Australian economy. Australia is highly dependent on China for its exports.

While Chinese stocks traded mixed as markets assess the latest news from PBOC. Hong Kong's benchmark Hang Seng index advances 0.82% at 24723 while mainland China's benchmark Shanghai Composite loses -0.40% now and trades near 3912.