Nikkei 225 closes at the lows, down by 2.4% on the day
My, oh my. Look at that plunge. Doubts are starting to reemerge as to whether or not US and China can truly resolve their differences on trade and other issues and all the euphoria from yesterday has almost entirely dissipated. For the case of Japanese stocks, they already have.
The Nikkei is the biggest loser on the day among Asian equities as financial stocks also sink as the inverted US yield curve prompted worries about a possible recession to come. The index now falls back below the 200-day moving average and closes at its lowest level in a week.
Meanwhile, it's not looking too bright across other equity spaces too with Chinese equities also in the red but notably E-minis are extending their declines ahead of European trading falling by 0.8% on the day now:
Expect the negative mood to carry over to European trading. That should help to keep the Japanese yen bid as long as Treasury yields continue to hold near the lows.
