FXstreet.com (Barcelona) - Asian stocks have gone down on Tuesday weighed by a high volatility session in the Shangai Composite Index and after a profit-taking session on Monday with sharp declines all around the globe that have pulled commodity prices down. Euro and Pound have bounced from yesterday's lows.
Japanese Nikkei Index has declined 0.5% while Hong Kong's Hang Seng Index lost 0.3% and South Korean Kospi Index shed 0.2%. Markets in Taiwan and Indonesia posted large declines.
Investors optimism about the pace and strength of economic recovery turned into skepticism on Monday after U.S. Consumer Confidence declined unexpectedly on Friday, showing that the full recovery of the wold's largest economy might take longer than previously assessed, which has arisen concerns over the latest equities' rally having outstepped fundamentals.
Euro and Pound pick up from multi-week lows
EUR/USD fell from levels around 1.4300 on Friday on the back of U.S. Consumer Confidence's decline, and the Euro found support at 2-weeks low 1.4045 to pick up during Asian session and reach levels above 1.4100 at the time of writing.
GBP/USD decline from 1.6665 high on August 13 reached a one-month low at 1.6275 on Monday, and the Pound has piked up during Asian session, reaching levels around 1.6400 at the time of writing.
USD/JPY decline from 97.75 high on August 7 has reached support at 2-week low at 94.20, and the Dollar bounced during Asian session to test 95.00 level at the time of writing.