by Chris Becker
Market action in Asia has been generally negative following non-economic news abroad that is slowly adding to volatility as volume drops towards the Christmas season. The BOJ met today and left monetary policy unchanged, which saw Yen selloff slightly, but Governor Kuroda’s press conference which is up soon may move things further. Yields on Aussie bonds firmed further as the Aussie dollar drops slightly although stocks are doing well.
The Shanghai Composite remains in selloff mode, down another 0.5% after the lunch break to be just on 3100 points.. My target for this correction is terminal support at 3000. The Hang Seng is off only 0.25% still making good on its own correction after it broke the key support level at 22000 points on Friday. This is looking well oversold now and could bounce back soon:
In Japan, the Nikkei has rebounded as Yen weakens against USD following the BOJ meeting, up 0.5% on the close. USDJPY has broken through hourly ATR resistance so we should see a return back up to the 118.40 level:
S&P Futures are firming going into the London open, trying to break above the trendline on the hourly chart at 2260 points:
The ASX200 is again the best in the region, up another half a percent and almost at 5600 points as the Christmas rally continues. Its bank stocks again inflating the bourse, helped along by gold miner Newcrest as the undollar continues its bounce in Asia.
The Aussie dollar however remains depressed, trying to find a bottom here at the 72.50 level against USD. Watch that very clear hourly trendline for a possible but unlikely upside break:
The data calendar tonight has almost nothing of note to worry about.