FXstreet.com (Barcelona) - Asian markets have tumbled today as the sentiment of the last days faded on weak economic data in U.S. and Japan which has produced upside reversals for Dollar and Yen, as investor rushed to those currencies as safe haven, while Europeans have been negatively affected.

Asian Markets have closed its four-day winning streak on Friday, as weak data brought back fears of a gloomy economic outlook. Unemployment rose in Japan to a three year high in December; 4.4% from 3.9% on the previous month, while Industrial output plunged almost 10%.

Stock markets on the region have been seriously affected by those news and selling orders have dominated the session, Tokyo's Nikkei Index has closed with a 3.12% decline weighed by news that Honda Motors has reduced its profits by 89%. The Hang Seng Index dropped 1.8% lead by losses at HSBC.

Dollar and Yen rally on economic fears

As we have seen other times in recent months, economic fears increase demand for safe havens as Dollar and Yen, which have been the most favoured currencies overnight.

The EUR/USD has dropped about 300 pips from 1.3179 and at the moment is aiming to reach the weeks' low at 1.2836, the next important support level remains at 1.2766; Jan 23 low.

The USD/JPY rose up to 90.77 in the last two days from 88.49, to withdraw on risk aversion dropping down to 89.15. The pair has been trading in a range from 88.0 to 90.77 for the last six days.

The GBP/USD was also one of the losers in Asian session dropping from 1.4413 to 1.41 82 where it seems to havve found support to advance some pips to trade around 1.425 at the minute. Other remarkable currency pair has been the NZD/USD, as the kiwi fell to a six-year low against the Dollar on Reserve Bank of New Zealand Governor Alan Bollard's words about the need for further rate cuts.