Asian markets slide as China fears hit commodities
Asian markets are taking a beating this morning amid concerns of a weakening Chinese economy and tensions in Ukraine, ahead of Crimea's referendum on Sunday. Copper is suffering a significant fall while gold is making gains.
Weak Asian markets reflect Wall Street's uncertainty over the strength of the US economy. However, many investors are remaining hopeful that the Chinese central bank will undertake a loosening of monetary policy.
Japan has seen a drop in consumer confidence for the month of February from 40.5 to 38.3, as consumers become increasingly doubtful about the benefits of Abenomics.
Japan economist for Capital Economics Marcel Thieliant, commented:
Households remain concerned about weak income prospects. The index for income growth dipped from 38.6 to 38.2, a three-year low. What's more, households' assessment of their overall livelihood is closely linked to their expectations about wage growth.
This index declined from 37.5 to 35.6, a level last seen following the Great East Japan Earthquake in 2011. Any recovery in consumer confidence in coming months will be strongly dependent on an acceleration in wage growth.
The Nikkei is down 2.4 per cent and the Hong Kong Hang Seng index is taking a hit of 1.7 per cent. The Tokyo Stock Exchange Tokyo Price Index is also down two per cent, while the Shanghai Stock Exchange Composite Index has fallen 0.8 per cent so far. South Korea's Kospi is down 1.6 per cent.