A solid day in Asia with all stock markets putting on meaningful gains on the back of the re-opening of the US government overnight which led to more record highs on US bourses. The Aussie dollar has fallen back against all the majors in the wake of the BOJ meeting and the lack of Japanese inflation while commodity prices lifted across industrial metals and oil.
In mainland China the Shanghai Composite continues its advance after breaking resistance at 3400 points, closing 0.7% higher to 3525 points. The Hang Seng Index is also up even more, surging over 1% to 32756 points as this hot trend continues without any signs of stopping – apart from way overbought momentum:
S&P futures have also advanced in anticipation of some solid earnings reports tonight. The trendline is parabolic:
Japanese stocks have rebounded on the back of the BOJ meeting and lack of inflation report with the Nikkei 225 up 1.3%, surging through 24000 to 24118 points. The USDJPY pair wobbled a little on the BOJ meeting but is steady going into the City session, currently at 110.80 or so. While support is a little away at the 110.30 level the lack of any new highs since mid last week will start to weigh from here:
The ASX200 finally puts some runs on the board after every other market in the known universe moves higher. The bourse lifted 0.7% to finish back above 6000 to 6037 points. The major movers were bank stocks, with BHP and RIO basically treading water while Domain bounced back from doom to be up 9% for the day.
Theres some a happenings going on with the Aussie dollar which has rejected the overhead 80 cent level vs USD, , falling the Monday morning gap low level at 79.80 or so. This is a little ominous if it follows through, but a more conservative bet would be a move below ratcheting ATR support at the 79.40 level:
The economic calendar has a couple important releases overnight with the closely watched German ZEW survey the main one before we get to the broader EZ wide consumer confidence print, followed by more US Treasury auctions.