Risk-off grips Asian markets, Nikkei 225 drops on firmer yen

The stocks on the Asian bourses snapped two-day winning streak and inched lower from yearly highs, as prevalent risk-off market profile crushes appetite for risk assets.

Moreover, a firmer yen amid broad USD sell-off weighs heavily on the Japanese retail and exporters’ stocks, sending the local stocks in the red zone. Further, metal and mining stocks took a hit in Tokyo after the Chinese steel futures fell overnight. While the Australian markets digest somewhat mixed economic data, as investors shift their focus on RBA’s Stevens speech due out in an hour's time.

The Japanese benchmark index, the Nikkei 225 drops -0.40% to 16,703. The Australian markets also track its Asian peers lower, with the S&P/ASX 200 now trading -0.52% lower at 5,520 points.

The Chinese equities buck the trend and defend mild gains, with the benchmark Shanghai Composite index up +0.08% above 3k mark; the CSI300 index rises +0.12% around 3,260. While Hong Kong markets gain +0.46% to 22,570 levels.