Asian stocks waver ahead of US data, Fed Yellen

Risk-off sentiment remained the key theme across the Asian markets this Thursday, with most Asian indices trading in the red zone, despite weaker treasury yields, as markets remain wary heading into Fed Chair Yellen’s testimony due later on the day.

The Japanese Nikkei 225 index traded modestly flat, unable to benefit from the latest leg higher in the USD/JPY pair, after the BOJ offered to buy to buy unlimited amounts of JGBs 1-3 year maturity . USD/JPY moved back below 109 handle, down -0.19% on the day.

While the Australian benchmark, ASX 200, edged higher on the back of resurgence of RBA rate cut bets, after the Aus jobs data disappointed markets. While higher oil prices also help boost the resource-heavy index.

Further, the CBOE Volatility Index (VIX), a fear gauge, advances over 2%, suggesting risk-off market profile and hence, weighs down on the sentiment around the Asian indices.

Meanwhile, Japan’s Nikkei 225 drops -0.18% to 17,830, the Australian S&P/ASX 200 trades +0.26% higher around 5,340. The Chinese equities inch lower, with the benchmark Shanghai Composite index down -0.40%, while CSI300 index -0.27% lower. Hong Kong markets trade dead flat around 22,280 levels.

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