FXstreet.com (Barcelona) - Asian markets are going through losses on Monday with investors' skeptical about the strength of U.S. economic recovery after negative U.S. personal consumption and CIT bankruptcy. Euro and Pound have trimmed losses after Friday's decline.
Japanese Nikkei Index has dropped 2.3%, while Hong Kong Hang Seng Index went 1.7% lower, and South Korean Kospi Index dipped 1.6%.. Markets in Australia, China, Singapore and Taiwan have also gone through losses.
Risk aversion has remained dominant in Asian session, following Friday's sell-off in Wall, Street after U.S. Personal Consumption dropped 0.,5% in September,m the largest decline since December 2008, which has arisen concerns about the strength of U.S. economic recovery, accentuated by news of CIT Group filing for bankruptcy, which has triggered a sell-off for financial shares.
Euro and Pound trim losses
EUR/USD declined on Friday from 1.4855 high to a session low right above 1.4700 on late U.S session, weighed by U.S. Personal consumption figures. During Asian session, the pair has hold above 1.4700 and the Euro has reached a session high at 1.4780 before easing to 1.4755 at the moment of writing.
GBP/USD dropped on Friday from 1.6580 high, to 1.6410 low, and after testing Friday's low on early Asian session, the Pound has climbed to 1.6480 session high. At the moment of writing, the Pound trades ground 1.6450.
USD/JPY dropped on Friday from 91.50 area to levels right below 91.00 and after a brief slide to 89.15 low on early Asian session, the pair is back to move in a range from 89.90 to 90.20 in the moments ahead of the European opening.