Asian stocks drop on increased nervousness ahead of EU referendum

The stocks on the Asian indices stalled their four-day winning streak and dropped this Wednesday, as markets sought to take the profits off the table before the UK votes on the EU’s membership tomorrow.

Moreover, increased nervousness ahead of the EU referendum also keeps the traders on the back foot, as the outcome of the referendum is likely to spur massive volatility across the financial markets.

Furthermore, a minor-recovery attempt seen in the oil prices is expected to provide some support to the region’s indices, while rising demand for the yen amid risk-aversion will continue to weigh on the retail and exports-oriented stocks.

EU referendum eyed

The Japanese benchmark index, the Nikkei 225 slips 1% to flirt around 16k barrier, as USD/JPY drops -0.33% to 104.40 levels. The Australian markets track their Asian peers lower, with the ASX 200 index down -0.12% at 5,267.

While the Chinese equities buck the trend and trade moderately higher, with the benchmark Shanghai Composite index up +0.17% below 2,900 levels, the CSI300 index gains 0.14%.. Hong Kong’s Hang Seng drops -0.54% to 20,555.