BLOODBATH: Stocks across Asia are getting obliterated

Bradley Kanaris/Getty Images

Asian stocks are getting hosed, mirroring the price action seen in European and North American trade before them.

Here’s the scoreboard at 5pm in Sydney.

Australia ASX 200 5883.80 , -2.74%
NZ NZX 50 8721.20 , -3.64%
Japan TOPIX 1701.86 , -3.52%
Shanghai Comp 2591.71 , -4.92%
Shenzhen Comp 1305.71 , -5.59%
HK Hang Seng 25203.72 , -3.78%
Sth Korea KOSPI 2143.71 , -3.81%
Singapore STI 3037.91 , -2.99%
Taiwan TAIEX 9806.11 , -6.31%
Philippines PSI 6798.17 , -2.90%
Indonesia JKSE 5714.50 , -1.82%
Malaysia KLCI Index 1699.92 , -2.03%
Thailand SET 1675.09 , -2.71%
India Nifty 50 10200.3 , -2.48%
S&P 500 Futures 2755.25 , -0.93%

“Cheap money has been the rocket fuel for equities as investors piled in the past two years given that it was the only game in town to get a decent yield, but the more aggressive Fed rate-hike schedule has brought the gravy train to an end sooner than expected,” says Stephen Innes, Head of Trading APAC at OANDA.

“The only real question facing investors is just how far is the Fed prepared to go?”

Rather than nerves about the US-China trade war, Innes says the current selloff likely reflects an unwinding of complacency from investors.

“Investors have become used to and perhaps over complacent from FOMC’s in the past that approached rate hikes cautiously,” he says.

“So the markets are still going through the reality check with Jay Powell at the helm who has unambiguously signalled a significant policy change was afoot.”

In comparison to the selloff in stocks, Asian FX markets are much more subdued, although the major currency pairs such as the Australian and New Zealand dollars and Japanese yen have already moved a lot in response to the carnage in stocks overnight.

AUD/USD 0.7073 , 0.18%
NZD/USD 0.6475 , 0.43%
USD/JPY 112.15 , -0.11%
USD/CNY 6.9297 , 0.11%
USD/CNH 6.9369 , 0.19%
USD/HKD 7.8367 , 0.00%
USD/KRW 1144 , 0.12%
USD/SGD 1.3826 , -0.04%
USD/TWD 31.13 , 0.16%
USD/PHP 54.20 , 0.13%
USD/MYR 4.158 , 0.16%
USD/IDR 15260 , 0.41%
USD/THB 32.82 , -0.49%
USD/INR 74.33 , 0.12%
US Dollar Index 95.25 , -0.27%

Crude futures continue to selloff, adding to the losses seen on Wednesday. Gold — renowned as a safe haven asset — is trading in the red.

Brent Crude $81.74 , -1.62%
Gold $1,192.61 , -0.15%
Silver $14.26 , 0.00%

Reflecting the risk-off tone over the past 24 hours, government bond yields are falling, including the US 10-year which has tumbled 7 basis points to 3.155%. The decline in US yields may explain the modest reaction in currency markets seen during the Asian session.

United States 3.155% , -0.070%
Japan 0.141% , -0.012%
Australia 2.737% , 0.005%

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