The Nikkei moves back towards its 100-day moving average
Japanese stocks retreated in light of a broad softer tone across Asian equities as we begin the day. The fact that Japan's core machine orders for January was seen slumping did not help the mood as well for manufacturers. Chinese stocks are also lower for the most part with the Hang Seng down 0.5% while the Shanghai Composite is down 0.7% currently.
The risks arising from Brexit basically soured risk appetite since overnight trading and that is carrying over to the new day here in Asia. US equity futures are trading about 0.1% lower at the moment and I would expect European equities to also display a bit more of a cautious tone in the session ahead.
That should keep the aussie and kiwi on the back foot as we begin proceedings but there shouldn't be much to exaggerate the declines as European trading will still center around Brexit developments later on.
