Stocks are very positive here in Asia on the back of the Korean talks development, with the Yen falling against USD further supporting the risk on mood. With risk markets bracing for tonights US unemployment print – the most important event on the economic calendar – this was good timing for the buy the dip crowd, furthering the recovery throughout the week.
The Shanghai Composite has finally closed above the important 3300 level, surging late in the session to be up 0.6% at 3307 points. The Hang Seng Index is doing even better, up another 1% by closing at 30984 points. This takes it above the high moving average band and sets up for a positive trend next week:
S&P futures are tentatively positive here on the Korean development and in preparation for tonights NFP print:
Japanese stocks were solid again today with the weaker Yen helping, as the Nikkei 225 closed 0.5% or 100 points higher to 21469 points, now at its midpoint of control again and ready to breakout if news remains positive. The USDJPY pair surged on the Korean news getting back above its downtrend line to almost break through the 107 handle:
The ASX200 had a mild finish to the week as I expected, closing only 0.3% or 20 points higher to just over 5963 points, still shy of the 6000 point barrier but positioned to breakout if tonights NFP print is not too aggressive. The Aussie dollar is a bit depressed however, pushed down below the 78 handle and within a very tight range, for the same reason:
The economic calendar tonight is all about the NFP print for February, but there’s other releases to watch for including German industrial production, UK trade figures and Canadian unemployment.