A sea of red across Asian stock markets in response to Friday’s selloff in European banks as the Turkish financial worries grow. Emerging market currencies are being pummeled, plus the majors with offshore Yuan trading at a two week high, ready to break through the 7 handle while Yen is being bid up strongly on safe haven concerns.
The Shanghai Composite is currently down 0.7% going into the close at 2778 points, after being down at least 1% before the lunch break, turning previous support at 2800 into overhead resistance. The Hang Seng Index is off more than 1.6% to 27896 points, back below terminal support at 28000 points after a false break mid last week, but not yet making a new daily low:
S&P futures are down 0.4% alongside Eurostoxx as USD strength continues to weigh on equities. Friday night was more robust than in Europe, so we shouldn’t see as big falls, but this all depends on volatility calming down:
Japanese stocks were the worst in the region as Yen safe haven buying sent the Nikkei 225 closing 2% lower at 21857 points, confirming the breakdown on the daily chart. The USDJPY pair gapped below key support at the 110.70 level and fell even further throughout the session, hitting the key 110 handle that must hold:
The ASX200 did the best, falling only 0.4% to close at 6252 points, still obviously below overhead resistance at 6300 but showing there’s still optomistic buying support below. The Aussie dollar gapped down this morning after the Friday night blood of bath and has found some support at the 72.60 level. This isn’t saying much given the wipeout of months of support here:
The economic calendar starts the week slowly with a few Treasury auctions but not much else overnight.