Australian stocks are tumbling yet again on Wednesday, weighed down by persistent concerns surrounding China’s economy and renewed geopolitical tensions, this time on the Korean peninsula.
First, the scoreboard as at 1.30pm AEDT.
- ASX 200 5120.8000 , -63.63 , -1.23%
- All Ords 5176.4 , -62.85 , -1.20%
- AUD/USD 0.7118 , -0.0039 , -0.54%
Having fallen modestly in early trade, losses accelerated midway through the session as Chinese markets reopened.
Another weak Chinese yuan fix, the highest in over four years and the largest daily devaluation in two months, started the rot in not only stocks but also the Australian dollar, intensifying fears that capital outflows from the country are accelerating.
A weak services PMI reading from China, falling to a 17 month low in December, did little to address concerns that all is not well in the Chinese economy.
Reports of an 5.1 magnitude earthquake in North Korea, suspected to be a nuclear test, ensured that stocks, already under significant pressure, continued to slide.
Fitting with the decline in the headline ASX 200 index, all sectors are currently trading in the red with the most substantial losses coming from the gold, materials, information technology and energy sectors.