After a wild Wednesday on European and US markets, the volatility has continued into the Asian session today.
Markets across the region started in positive territory but it all started to reverse in later trade.
The Nikkei 225 started with a gain of 2% but turned negative in the afternoon and closed down 2.43%, with most of the move coming over just a few hours of trade. It was a savage, China-like selloff, that resonated across the region. Here’s a chart of the day’s action on the Nikkei 225, showing the sell-off gaining pace through the afternoon:
Chinese markets also went negative in late trade. A short time ago the Shanghai Composite was down 1.6%.
The move doesn’t appear to have been caused by anything in particular, although the Chinese offshore-traded yuan, which is being closely monitored by markets right now, has been weakening against the dollar late in the Asian session.