Shanghai Composite drops below 200-HMA, Asian stocks bleed

• Shanghai Composite has reversed Wednesday's gain and is trading below key average. 
• Aussie stocks are flashing red despite upbeat jobs data. 
• Coronavirus scare is likely keeping markets on the defensive. 

Chinese stocks are under pressure and heading toward Wednesday's low amid broad-based risk aversion in the Asian markets. 

The Shangai Composite is currently trading at 3014, representing a 1.3% drop on the day. The index has breached the 200-hour average at 3026 and is closing on Wednesday's low of 3006

More importantly, it has reversed pretty much the entire bounce from 3006 to 3069 witnessed 24-hours ago. 

Other regional indices are also flashing red. For instance, Japan's Nikkei is down more than 0.70% and South Korea's Kospi is reporting a 0.8% drop. Shares in
Hong Kong are down 1.32%. 

Australian stocks are shedding about 0.70% despite the upbeat jobs data released in early Asia. Australia's jobless rate fell to a nine-month low of 5.1% in December and the economy added significantly higher jobs than December. 

Investors scaled back expectations for an RBA rate cut in February, adding to the bearish pressures around the Aussie stocks. 

Risk aversion has returned to Asian markets, possibly due to fears of coronavirus outbreak. The Wuhan flu is already spreading within China. Further, Japan, Thailand
and South Korea have reported cases.