A softer touch for Asian equities but it isn't as bad as feared

Nikkei 12-06

Despite the rout in European and US stocks yesterday, the decline in Asia today is more modest with the Nikkei closing well off earlier lows and keeping above its 200-day moving average. The Hang Seng is down by 1.2% while the Shanghai Composite is down 0.1%.

Elsewhere, US futures are up by around 1.4% after the sharp fall yesterday amid signs of a slight retracement but all eyes will be on how Wall Street takes to this going into the weekend later on in the day.

In the currencies space, the dollar has pared its earlier gains with the aussie and kiwi now settling a little higher with cable also closer to flat levels at the moment.