Outside Australia its been a dour Monday for Asia with all stock markets posting small losses as the USD advanced and Treasury yields continued to spike in the wake of uncertain geopolitics on both sides of the Atlantic. European stock futures are up slightly but are likely to reverse on the open but the selloff in bonds may help those bourses.
The Shanghai Composite closed 0.6% lower to 3051 points, likely on track to head to key terminal support at the 3000 point mark. The Hang Seng Index retreated about half that, losing 0.3% to 30321 points, still just above support at the 30,000 level which remains firm here on the daily chart:
S&P futures are slowly melting back down again, although on low volume after the weekend break. The Friday high must be beat around 2688 or so for any signs of a bullish move higher:
Japanese stocks were also deflated even as a weaker Yen provided a tailwind, the Nikkei 225 closing down 0.3% to 22208 points. Yen lost ground against the USD but the USDJPY pair did not best its Friday session high, settling just below the 108 handle going into the City open quite overbought and ready for a pullback:
The ASX200 was the standout and rose about 0.3% to 5886 points, mostly lead by oversold banking stocks . The Aussie dollar has comeback very slightly here, bouncing off a small level of support at the 76.50 level, but this is weak given last week’s rout:
The economic calendar starts anew with some preliminary PMI figures from both sides of the Atlantic and not much else.