by Chris Becker
Its bounceback day here in Asia as no news about North Korea is good news, with Friday’s night slight return to risk helped today with positive Chinese economic prints. Although the industrial production number disappointing, the mood has been positive, with Yen also weakening slightly alongside gold as Aussie dollar came back with commodity prices.
In mainland China the Shanghai Composite has come back strongly, up nearly 1% to 3237 points following the near 2% fall on Friday, bouncing off temporary support at the 3200 point level. The Hong Kong based Hang Seng Index is doing slightly better, up 1% and getting back above daily support to be below 27000 points. The Friday move had set up for a retracement down to 25300, but this might bring it back from the brink:
Japanese stocks were seemingly in opposite world as the Yen weakened against USD all throughout the session, but not enough to erase the Friday gains. The Nikkei lost nearly 1% and remains below the 20,000 point level. The USDJPY pair bounced back from its Friday low below the 109 handle but its nowhere out of danger here, with the four hourly chart already suggesting price exhaustion:
S&P futures are slowly building as risk returns tentatively to the table:
The ASX200 was bid from the open and surged throughout the afternoon to finish up 0.6% higher, taking back less than half of Friday’s losses to be at 5729 points and back above the 200 day moving average.
The Aussie dollar has bounced back a little before coming back in late afternoon trade to be just below 79 cents against USD. Resistance overhead at the 79.30 line maybe too far for the Pacific Peso:
The data calendar starts the week slowly, with Eurozone wide industrial production numbers that are already half in the bag given the German print last week.