There was a lot of weakness in Asian stocks earlier this morning. Investors were just not in the mood to go bullish after there was a slump in U.S. stocks during Friday’s trading session. The weakness has been apparent since last week. In fact, Asian equities have gone bearish for the past few weeks of trading. This is the longest losing streak for a while. A lot of this is following steady gains in previous weeks.
Nissan and other car companies have been big movers, as traders feel that it is worth taking some big risks. This has been the case since the beginning of today’s trading session. That has really put much downward pressure on Asian stocks this morning. The fact is that there was a surge in Japanese bond yields, a third week of advances. In addition, the weak economic data from China has driven down the demand for risky assets. Therefore, it is no wonder that car companies have been badly hit.
On the other hand, it is important to note that there have been advances in certain Japanese stocks, as exports did become more attractive. The economic stimulus did drive the yen lower in recent months and this has helped the economy. It is vital to understand that this has not been enough, as the devaluation of the yen may have negative consequences in the long term.
It is possible that Nissan could make a comeback in the near future, especially as the stock is so undervalued at the moment.