A generally positive day in Asian stock markets, although Japanese stocks felt the weight of a strengthening Yen, but also a weaker USD as the Aussie pipped above 80 cents again. Earning season is in full swing on US stocks and there’s no real surprises as the risk-on mood proliferates, with oil and gold rising, but copper falling.
In mainland China the Shanghai Composite continues its advance after breaking resistance at 3400 points, closing 0.4% higher to 3559 points. The Hang Seng Index has broken through a new high as well, reaching just over the 33,000 point level to finish 0.2% higher and extending this wonderful rally:
S&P futures are slowly getting higher, but this looks stretched. BTFD still rules until it doesn’t:
Japanese stocks have come down strongly as Yen strengthened, the Nikkei 225 down 0.8% to 23940 points. The USDJPY pair is dicing with the 110 handle once again, but 108 looks to be the next target:
The ASX200 put on some small gains, up 0.3% to finish at 6054 points. Bank stocks were mixed, with CBA down and others stable while QBE lifted nearly 6% taking back its previous losses after it announced a big loss on natural disasters and the Trump tax cuts (but I repeat myself)
The Aussie dollar really wants to break through substantially above the 80 cent level vs USD, but has set up a triple top on the four hourly chart. Its still on its trendline and momentum is behind it, but there is potential here for a pullback:
The economic calendar includes a slew of preliminary services and manufacturing PMIs in Europe and the US, plus UK jobs.