Asian markets rallied today, as Chinese trade data for December lifted expectations, and local private equity deals and takeovers helped spur the action on the S&P/ASX 200 Index, up over 1% or 46 points to 4152 points.
On the daily charts, the local bourse is climbing up above its rising support line, indicating a short term rally is in the works, with overhead resistance to clear at 4300 points before a sustained rally can be called:
Other Asian markets saw modest gains, with Japan’s Nikkei 225 up 0.46% or 38 points to 8429 points, the volatile Hang Seng also up around 0.5% to 18969 points whilst the Shanghai Composite continued to rally, currently up over 2% at 2272.
The AUD was boosted by the Chinese data, up nearly 1% above 1.03 again, currently trading at 1.0309 against the USD, whilst WTI crude rose similarly, up 0.6% to $101.79 USD a barrel.
Gold was bid up lightly to $1620USD an ounce, still dicing with its resistance and 200 day moving average level on the daily charts, also in AUD, where is sits at $1571AUD an ounce:
A breakout above the $1620USD an ounce level is likely to be done in conjunction with breakouts on other “undollar” risk assets, with many overseas indices now sitting just below resistance levels and ready to move..
Movers and Shakers
All sectors were bid up, with energy and materials leading the way, up 1.8% and 1.7% respectively, utilities lagging only up 0.4% for the day.
The big four banks were all up around 1%, still sideways on the charts, with ANZ up 1.02%, Commonwealth (CBA) up 0.77% and just below strong resistance at $50 per share – keep an eye on that one – National Australia Bank (NAB) was the worst, only up 0.5% and Westpac (WBC) was also up 1%, climbing above tentative support at $20 per share.
Macquarie (MQG) was flat, not joining in on the fun whilst healthcare favourite Cochlear (COH) continued its selloff, down 1% to be below $60 a share after bouncing off its long term trendline:
Its “twin” CSL jumped 1% to get back on trend, and still above its long term moving average, whilst Telstra (TLS), continued back on its blowoff trend, up nearly 0.6% and just below its recent high.
To the resources, where good Chinese data was most appreciated: BHP Billiton (BHP) was up 1.3% but still grinding out a bearish descending triangle pattern with support at $34 a share, its “twin” Rio Tinto (RIO) was up 1.6% and possibly breaking out from its short term downtrend:
Gold miner Newcrest Mining (NCM) saw strong bids again, up over 2%, looking very bullish as it rebounds off a bottom at $30 per share whilst the commodity itself remains in a holding pattern. Fortescue (FMG) was up 2.5% but is still tracking sideways after failing to rally pre-Xmas, and to finish out the ASX8, Woodside Petroleum (WPL) was up 1.5% slowly building up to a short term uptrend, but on weak bids.
Finishing up with the defensive stocks Wesfarmers (WES) and Woolworths (WOW) were up 0.8% and 0.7% respectively, where WOW remains just on trend, whilst WES remains in an holding bullish pattern.
Light data releases tonight, with French industrial production the only standout. European and US stocks futures are up 0.5% or more following Asian markets, whilst SPI futures have slipped below the 4150 point level.