Aussie stocks drive rest of Asia lower, China CPI weighs

Risk-off sentiment gripped the Asian markets this Tuesday, as most major indices kicked-off on a shaky ground and inched lower, tracking a negative close on their Wall Street counterparts.

While the sentiment soured further after the Chinese CPI data disappointed markets and dented investors’ confidence in risky assets further. The Australian stocks suffered the most amid weaker Chinese inflation figures and a sharp drop in the Australian retail volumes.

While a slightly stronger Yuan after yesterday’s sharp devaluation, kept the Chinese equities under pressure, leaving them largely subdued in today’s trade. While weaker oil prices in response to resurfacing worries over OPEC deal non-compliance also dragged the resource and energy stocks lower.

The Japanese Nikkei 225 index trades muted around 19,450. The Australian benchmark, ASX 200 index drops -0.87% to 5,756 points. Mainland Chinese markets trade weaker, with the Shanghai composite down -0.10%, while Shenzhen’s CSI 300 index trades almost unchanged. Hong Kong's Hang Seng advances +0.31% to 22,625.