Asia markets shrugged off the mixed overnight lead with positive returns from stocks, particularly locally as the upside GDP print overshadowed the criminal behaviour of Megabank.
The Shanghai Composite put in a scratch session, putting on only a handful of points to close at 3115, in a listless session. The Hang Seng Index gapped again, this time putting on meaningful gains, lifting 0.5% and staying above the 31000 point level at 31249. This is looking a little unsustainable as it races ahead to the former high at 31700, a pullback is to be expected:
S&P futures are slowly building here, just holding on slightly above long held resistance at 2740 points which remains tentative support for this breakout: – watch TSLA (Tesla) on the open!
Japanese stocks did a bit better with a higher USDJPY supporting, the Nikkei 225 closing about 0.4% higher at 22625, beginning to look more positive on the daily chart. The USDJPY pair made a new session high on the four hourly chart, lifting through the 110 handle and looks set to take off tonight:
The ASX200 clawed back its RBA meeting losses, gaining some 0.5% on the upside GDP print to finish above 6000 at 6025 points, but I still contend it looks weak here as the banking sector is not yet out of trouble. The Aussie dollar broke out to the upside, going straight through its minor downtrend on the four hourly chart and hitting the 76.70 level before coming back slightly as traders weigh up the GDP print:
The data calendar tonight includes the monthly DOE oil inventory report which might shake up the somewhat depressed oil market.