The Nikkei closes just above its 200-day moving average
Japanese traders and investors are back from their long break and we observe a notable decline in the Nikkei, which I would attribute much to yesterday's sour mood in the equities space. The negative tones are continuing in Asia with the Shanghai Composite also down by 0.2% and US equity futures are also weaker by 0.6% to start the day.
However, Treasury yields are little changed and that is helping to see the yen stabilise a little following some see-saw action in trading yesterday. That said, USD/JPY holds lower at 110.63 now but that owes much to softness in the dollar rather than any risk-off sentiment.
