Tokyo's main index closes lower as risk off tones prevail in Asian trading

  • Session high 21,476.66
  • Session low 20,971.93

E-minis are trading 0.8% lower on the day and with the Chinese yuan falling to decade lows against the US dollar, it's exacerbating market worries on the day further. And that's leading to the decline seen in Asian equities today.

I expect similar tones to carry into European trading as well with markets still sitting on edge despite the mini-rally in US equities overnight. That will keep the yen underpinned on the day too.

Watch out for AUD/JPY in the sessions ahead as it closes in on the 10 September low. A fall below that would bode well for risk barometers and will signify a further risk off sentiment in markets.