A much better day here in Asia after the stuttering start on Monday, with almost all stock markets in the green, helped along by a resurgent USD as the Yuan plummets. Financials were the vanguard as bond yields slowly rise to new highs as Treasuries jumped overnight.
The Shanghai Composite is building on its breakout, rising 1.4% to exactly 2900 points as it more than solidifies this move back above former support at 2800 points. The Hang Seng Index has followed in step, also up 1.4% to 28654, also potentially creating a bottom here on the daily chart at 28000, breaching the high moving average in a clear sign of a swing move higher:
S&P futures are up slightly alongside Eurostoxx with traders anticipating better earnings on tech stocks especially. The S&P500 four hourly chart is suggesting a retest of last weeks high just above the 2818 level:
Japanese stocks have clipped a little higher as the Yen weakened ever so slightly throughout the session. The Nikkei 225 closed up 0.4% at 22497 points, abating what looked like a clear reversal on the daily chart. The USDJPY pair is starting to make a series of higher lows on the lower timeframes, but is really just stuck here at the 111.35 level or thereabouts. It needs to get back above the high moving average at the 111.50 or so area to make this stick:
The ASX200 has picked up from its previous falls, up 0.6% to close at 6265 points, respecting support at 6200 points and getting ready again to retest the recent highs. The Aussie dollar is slowly declining in the face of a stronger USD, unable to get back above the 74 handle as it decelerates into tenative support at the mid 73s in anticipation of the dataflow overnight:
The data calendar continues tonight with a swathe of PMIs on both sides of the Atlantic plus pre-positioning for the ECB meeting later in the week.