Investor optimism is evaporating in the Asian trading session

David Scutt

Jan 15, 2016, 10:40 IST

Business Insider Australia

It looks like it's going to be a lacklustre, and disappointing, end to the trading week in Asia.

The end of the trading week in Asia is looking lacklustre.

Pushing aside a strong rally on Wall Street overnight, regional stocks are trading modestly higher to lower, although all remain well off the intrasession peaks seen earlier in the session.

Having opened up more than 1.7%, Australia's ASX 200 has had yet another session to forget, giving back all of its earlier gains, and then some, in the later parts of the trade.

At it's current level of 4,873.8, the index is on track to close at the lowest level seen since July 2013.

Business Insider Australia

Although it remains in positive territory, the Nikkei 225 in Tokyo is also well off its earlier highs.

In what is becoming a common theme, renewed concerns surrounding China appear to have been the main catalyst behind sharp reversal in sentiment.

Weakness in Chinese stocks, along with offshore traded yuan, or USD/CNH, is clearly weighing on risk assets.

A disappointing bank lending report for December also isn't helping.

The movements in stocks are being largely replicated across currency and commodity markets, with those most closely aligned to the performance of the Chinese economy struggling.

Here's the current Asia scoreboard as at 2.50pm AEDT.

Stocks