The selloff continues here in Asia with all bourses retreated firmly as risk goes off the table, energised by the selloff in bond markets. While the Yen firmed, the USD is returning to favour with the other majors, particularly the Aussie, reversing a weakening trend as risk off goes to safe havens.
In mainland China the Shanghai Composite is falling again, closing nearly 0.5% lower to 3504 points. The Hang Seng Index is also selling off quickly, down 1% to finish at 32635 points, breaking its daily uptrend line but still above tentative support at the 32000 point level:
S&P futures have slumped going into Trump’s first State of the Union speech tonight:
Japanese stocks have sold off sharply , with the Nikkei 225 down over 1.4% to 23292 points, also breaking its own trendline:
The USDJPY pair as expected has been unable to gain any traction above the 109 handle and sold off slightly, about to head back to the 108 level as the next target:
The ASX200 closed down 1% lower to 6022 points. The big four banks had losses, but only about half this amount, with industrials and miners leading the charge down.
The Aussie dollar is under some pressure following Mondays do nothing session. Support at 80.50 must hold here for another step up:
The economic calendar continues with two big ones tonight: European 4Q GDP and German January CPI. Following that, in the US there’s November house prices and consumer confidence figures for January.