Another mixed session here in Asia as the week draws to a close with Japanese stocks advancing while Chinese and satellite bourses like the ASX200 scratch along for the ride. Its all about interest rates, the USD and emerging markets at the moment as the ten year high in Treasury yields begins to bite on all parts of the super meta money system.
The Shanghai Composite is up a little after its long lunch break, about 4 points or so at 3157, still in the shadow of very strong overhead resistance at 3200 points. The Hang Seng Index is doing slightly better, up 0.2% or so after yesterday’s reversal, currently at 31011 points. There is still support at the 30700 point level here but its tenuous so I’m still watching the low moving average for signs of a rollover:
S&P futures are firming here but still within the moving average channel, so again watch 2700 points as key support going forward:
Japanese stocks continue to be the bright spark as Yen remains weak against USD. The Nikkei 225 is 0.3% higher to beat 22914 points, now doing better to get out of its recent sideways funk and start to put on some gains. The USDJPY pair is finding some short term resistance here at the 111 handle, coming back late in the session be ready to tackle the next line of resistance up at 113 in the medium term:
The ASX200 continues to form and ominous double bearish top on the daily charts, still unable to make any new highs above the 6150 points level, falling 0.2% to 6087 points going into the closing bell. The Aussie dollar is floating here just above the 75 handle and right in the middle of its moving average band on the four hourly charts, where breakouts and breakdowns are the only game to play in the short term:
The economic calendar finishes out the week with a whimper, with Canadian CPI the only major release of note to worry about. Oh and Trump’s ongoing scandals!
Have a good weekend!