The detente on the Korean peninsula is lifting all stock markets across Asia in reaction to the late earnings Amazon and other tech companies, plus another steady as she goes central bank – this time the BOJ – keeping stimulus on track. Currencies were relatively unchanged, as were bond yields as we head into the London session.
The Shanghai Composite is up slightly, rising 0.2% to 3082 points after slumping mid session, still on track to get back down to terminal support at the 3000 point mark. The Hang Seng Index clawed back some of yesterday’s losses, gaining 0.7% to close at 30279, just above support at the 30,000 level. This keeps into below the uptrend line from the February low and sets up a potential return there as momentum accelerates to the negative side:
S&P futures are up slightly in anticipation, with traders positioning for tonights GDP print:
Japanese stocks started out well in anticipation of a hold from the BOJ and moved higher post-release, with the Nikkei 225 closing 0.66% higher to 22467 points, still on track for higher gains. The USDJPY pair had been well overbought, still pausing here just above the 109 handle, also ready to burst higher:
The ASX200 was the best in the region, up 0.73% to 5953 points, now moving much higher above the psychologically important level at 5900 points, as pressure comes off the banks. The Aussie dollar is slipping below the recent “bottom” below the 76 handle against USD, now heading for the 75 level which could turn into an open rout:
The economic calendar finishes the week with a bang, with German unemployment and UK Q1 GDP data in the European session, followed by US GDP data and the BOE governor having a chat later in the session. Have a good weekend!