Asian stocks outside Australia turn lower

A minor relief rally seen in the Asian equities appear to have lost pace as the most major indices returned to the red zone as markets digest Fed’s cautious stance  on the interest rate outlook in wake of Brexit angst and hence, dampens the investors’ sentiment.

Moreover, a retreat in the oil prices combined with the Australian sovereign credit outlook downgrade by S&P to negative from stable also collaborated to the worsening risk conditions. While the Japanese stocks suffer the most from a sudden spike in the yen as risk-off returns to markets.

Japan leads Asian markets decline

The Japanese benchmark index, the Nikkei 225 drops +0.44% to 15,300, weighed down by weaker USD/JPY, down -0.45% on the day. The Australian markets remained little affected by the ratings downward revision and traded +0.44% higher at 5,220 points.

The Chinese equities extend losses, with the benchmark Shanghai Composite index dropping -0.39% to trade just ahead of 3k mark; the CSI300 index also falls -0.39%. While Hong Kong markets jump 0.94% above 20,600 points.