The Nikkei closes near the lows as Asian equities skid on China virus fears ahead of the Chinese New Year holiday
The meltdown in Chinese stocks is reverberating across the region and is keeping a more risk-off mood as we move towards European trading.
The Hang Seng is down by about 2% with the Shanghai Composite weaker by nearly 3% on the day heading into the final stages of the session.
As a result, we're seeing more defensive flows with 10-year Treasury yields dropping to two-week lows, down by 2.6 bps to 1.743% at the moment. That in turn is keeping yen pairs pressured, with USD/JPY resting at 109.56 currently.
