FXstreet.com (Barcelona) - Asian markets have traded lower on Thursday weighed by weakness in Chinese markets and an extended feeling that global markets could have topped after several months of rallies. Euro and Pound consolidate at lower levels.
Japanese Nikkei Index dropped 2.1% while South Korean Kospi Index ad Hong Kong's Hang Seng Index dropped, both 1.3%. Markets in Australia, New Zealand and Singapore have gone through declines between 0.2% and 0.3%.
Asian markets have been weighed by China's announcement of the possibility of curbing steel and cement production, which could harm economies in the area, as many Asian countries are big suppliers of China.
Furthermore, Wall Street markets have started to give signs of exhaustion after several months of rally, on Wednesday, upbeat new home sales and durable goods orders figures failed to produce a positive reaction in the Dow Jones Industrials Average.
Euro and Pound, consolidating at lower levels
EUR/USD dropped on Wednesday to levels below 1.4350 intra-week low, and, although the decline was hold at 1.4105, the pair has been unable, so far, to break above 1.4250.
GBP/USD decline from 1.6625 high on Friday, extended on Wednesday to a new low at 1.6160 6-week low. The Pound picked up afterwards to trade between 1.6210 and 1.6250 during the Asian session.
USD/JPY rose on Wednesday to 94.55 high after better than expected U.S. new home sale, although the Dollar reversed aggressively from those levels, and fell 100 pips lower to a 93.55 low on Asian session. At the moment, the Dollar moves around 93.70.