A less volatile session today here in Asia with most markets advancing, although the action was centered in China with the yuan falling on the back of poor trade data, taking mainland stocks with it. Aussie ten year yields jumped on the news, starting to approach 3% while the NZD fell on the back of an “accomodative” hold from the RBNZ.
In mainland China the Shanghai Composite continues to brush aside support levels, falling another 1.5% to 3262 points, taking out all of its December advance. The Hang Seng Index is hanging on though, up 0.3% to 30431 points, still failing to gain any traction. Support at 30000 points is coming up shortly:
S&P futures are very slowly building here but really need to breach the 2680 point level, or we’re off to the selling yard again:
Japanese stocks did a lot better however, with the Nikkei 225 closing up 1% higher at 21890 points. The USDJPY pair wants to get back above that 110 handle, but is finding stiff resistance at the 109.70 level here:
The ASX200 had a modest session, gaining only 0.2% to close 13 points higher at 5890, still shy of the psychological support level at 6000 points. The Aussie dollar is very flat here, with the last four sessions tightly wound at the 78.20 level and unable to break any lower:
The economic calendar includes the BOE interest rate meeting plus US initial jobless claims.