Asian stocks drop on growth concerns, Sterling remains weak

• Asian equities have come under pressure on fears of a deeper slowdown in the global economy.  
• Sterling is on the defensive, courtesy of Brexit impasse and political uncertainty in the UK.  

Asian stocks are reporting losses at press time, possibly on growth concerns, while Sterling is flashing red due to political uncertainty in the UK and Brexit mess.  

As of writing, the Shanghai Composite is shedding 0.10% and shares in Hong Kong are down 0.42%. South Korea’s Kospi and Japan’s Nikkei are trading largely unchanged on the day.  

Fears of a deeper economic slowdown are likely forcing investors to sell risk. A Reuters poll of economists in recent weeks showed that most expect a steeper decline in the global economy is more likely than a synchronized recovery, despite rate cuts by central banks.  

Further, the US data released on Thursday showed new orders for US-made capital goods fell more than expected in September.  

Even so, the Australian equities are showing resilience, possibly due to increasing calls for further rate cuts and quantitative easing.  

In the FX markets, Sterling is trading weak along with the pro-risk Aussie and New Zealand Dollars.  

GBP/USD is currently trading at 1.2840, representing a marginal loss on the day, having hit a one-week low of 1.2788 on Thursday.  

British Prime Minister Boris Johnson conceded on Thursday for the first time that he would not meet the Oct. 31 deadline to leave the European Union.