Not the Stormy session we were expecting here in Asia with most stock markets rebounding instead of following the very poor lead on Wall Street from Friday night. Adding to the calmness where no gaps in currency markets from the usual Monday morning nonsense, with Yen moderating slightly giving Japanese stocks a relief while the Aussie dollar heads back above 77 cents versus the USD.
The Shanghai Composite closed down 0.6% or 20 points to 3133 points, after taking out key support at the 3200 level in a huge selloff on Friday, as traders continue to weigh up the impact of the tariffs. The Hang Seng Index on the other hand rebounded, finishing 0.5% higher at 30452 points. Support at 30,000 points is pretty obvious here on the daily chart but the downside pressure is weighing:
S&P futures are up slightly from the Friday selloff as price clusters around the 200 day moving average and support at the 2600 point level:
Japanese stocks bounced back after the bloodbath on Friday, with the Nikkei 225 up 0.7% or 148 points to finish at 20766 points. Yen sold off slightly on the open and continues to do so this afternoonwith the USDJPY pair pushing up through the 105 handle in what looks like a short lived short covering exercise:
The ASX200 however followed the mainland Chinese stocks and sold off slightly today, falling 0.5% or 30 points to 5790, remaining below the 200 day moving average but just above the February lows. The Aussie dollar is picking up steam here after a flat Monday open, currently pushing up to 77.40 against USD:
The economic calendar starts the week with the usual Monday night Treasury auctions and not much else.