Asian stocks drop after Italy votes No

The stocks on the Asian bourses kicked-off a brand new week on a bearish note, as risk-off moods hit markets after the Italian PM Renzi conceded defeat and called it quits after the Italians voted No for the constitutional amendment referendum.

Moreover, tumbling oil prices amid fears that the non-OPEC producers may boost output also weighed heavily on the region’s indices.

However, over the last hours, a minor-recovery in risk sentiment can be witnessed, as dust settles over Sunday’s Italian vote aftermath, with markets now shifting their focus towards fundamentals, especially after upbeat Caixin Chinese services PMI release.

Meanwhile, Japan’s Nikkei 225 drops -0.65% to 18,306, the Australian S&P/ASX 200 slumps -0.97% to 5,391. The Chinese equities also track their Asian peers lower, with the benchmark Shanghai Composite index down -0.76%, while CSI300 index declines -1.04%. Hong Kong markets trade muted around 22,560 levels.