Asian markets decline on light trading session; Euro and Pound, lower

Asian markets have gone through moderate declines on Tuesday, weighed by the 3.5% decline in Chinese benchmark, in a cautious session. Euro and Pound have declined further from Friday's highs.

Japanese Nikkei Index dropped 0.5%, while the Hong Kong Hang Seng Index fell 1.1%, and South Korean Kospi Index edged down 0.3%. Markets in Taiwan and India were 0.3% down, while Australia's S&P Index was flat.

Chinese Shangai Composite Index went through another heavy selling session, as Prime minister Wen Jibao announced that China is facing economic distress, while affirming Beijing's intention to maintain the economic stimulus measures, as the government estimates that recent recovery lacks solid fundamentals.

Euro and Pound dip further

EUR/USD has slid further away from Friday's high at 1.4375, the Euro fell during early Asian session, from levels around 1.4325 to test 1.4275 again and attempt to bounce up has been capped at 1.4300, the pair trades at the moment at 1.4290.

GBP/USD dropped on Monday's U.S. session from levels right above 1.6500 to levels around 1.6390, and the pair bounced to 1.6430 to turn down again reaching levels right above 1.6375.

USD/JPY decline from 95.05high on Monday has extended during Asian session, as the Dollar dropped from levels around 94.50 to prices below 94.00. At the moment of writing, the Dollar moves at 93.90.