Risk awwnnn in Asia with stock markets firing on all cylinders, except the ASX200 which seems to just limp along, as risk plays catchup to the reversals of caution overnight.
The Shanghai Composite rebounded strongly after previously going straight down to terminal support at 3000 points, closing up nearly 2% higher at 3095 points. The Hang Seng Index followed at about half the pace, finishing 1.1% higher at 30386, bouncing off daily ATR support at 30000 proper and the series of higher lows, but its not out of the woods yet:
S&P futures are optimistic here, with no signs of a pullback after last nights rebound:
Japanese stocks had modest gains as the Yen remained muted against USD, so at least it didn’t provide much of a headwind. The Nikkei 225 gained around 0.8% to close at 22201, at least not making another new daily low and forestalling what looks like a full correction. The USDJPY pair fell back slightly throughout the session on the reversal of the safe haven bid, remaining below the 109 handle:
The ASX200 was the worst performer, but at least it went back above the 6000 point barrier, closing 0.4% higher to 6011 points, still looking weak here across all timeframes. The Aussie dollar was much stronger on the risk-on bid, sellers unable to breach below the 75.50 as it matched its overnight high, so we could be in for an intra-week high tonight just before the NFP print:
Yet more high level data tonight, one session before the NFP on Friday night, with EZ CPI a follow up to the German print last night, plus some more US GDP internal data to pour over.