A sea of red across Asian stock markets as confidence evaporates, confirmed by last night’s late rout on Wall Street. Only Chinese mainland stocks are holding on to gains, with gold falling alongside the Aussie dollar, although 10 year Australian government bonds finally rallied after giving up ground on the differential with US Treasuries of late.
The Shanghai Composite was just holding on to a scratch session after the long lunch break, currently at 3258 points but looking quiet tenuous on the daily chart, unable to crack above key resistance at 3300. The Hang Seng Index is off about 0.2% to 30775 points, the next best performer in Asia. Support at 30000 could come under pressure here as momentum remains negative on the daily chart:
S&P futures have continued their fall post-close with the key 2700 point support level under threat here:
Japanese stocks fell the hardest again, even as Yen weakened slightly. The Nikkei 225 lost nearly 2% to 21676 points, taking it back to the pre-breakout recovery level. Not a good sign. The USDJPY pair had a small blip higher, respecting its series of higher lows since bottoming out a couple weeks ago. It’s currently just below the 107 handle before The City opens with a small amount of support at the 106.50 level:
The ASX200 was hit hard as well, falling 0.7% or 43 points lower to 5973 points, finally breaking below the psychologically important 6000 point level. The Aussie dollar has flubbed again, falling straight through two week held support at the 77.70 level, currently just above the 77 handle for a potential small blip before The City opens:
The economic calendar is relatively quiet at the start of the session tonight, then ramps up with US ISM manufacturing the key release to watch.