Well now its getting interesting! Asian stocks sold off across the board, except Straya, with risk proxies like the Aussie dollar taking a dive and Japanese Yen bid up on safe haven as this trade war widens up a whole new battlefield. Trump dump of a slump of tarriffs on the Middle Kingdom set this off, while locally some differences in language from the RBA minutes indicated an easing bias, helping stocks stave off what should be a rout.
The Shanghai Composite reopened and had a doozy, crossing below 3000 points for the first time in over two years, losing some 3.1% to be at 2928 points. TheHang Seng Index followed suit, closing 2.4% lower to be well below 30000 points and wiping out the long held lower trendline here on the daily chart:
S&P futures are off considerably alongside Eurostoxx, with support taken out on the four hourly and daily charts – it might be a rough one tonight:
Japanese stocks took another big hit with the Nikkei 225 closing about 1.4% lower at 22358 points, wiping out the last two weeks of gains and putting its nascent recovery in doubt. Yen was bid on huge safe haven pressure with the USDJPY pair falling below the 110 handle, and below the lower end of what was a robust trend channel on the four hourly chart:
The ASX200 actually put in another positive close, again the only one in the region to do so, up 0.1% to finish at 6108 points, still holding above 6100 again but for how long as this trade war widens. The Aussie dollar slumped below the 74 handle and looks ready to break even lower as a multitude of trading houses turn bearish a little too late:
The data calendar is quiet again tonight, the only events of note being another conference with Super Mario – but also watch Trump on Twitter for further catalysts regarding this trade war!