The fallout from the Turkish crisis continues here in Asia with stocks mixed across the region. Japanese and Australian markets lifted but Chinese shares continued to selloff as the Yuan depreciates against USD again and the trifecta retail sales/FAI/industrial production prints disappointed slightly.
The Shanghai Composite is currently down 0.5% going into the close at 2771 points, as negative sentiment grows with previous support at 2800 firming as overhead resistance. The Hang Seng Index is off more than 1.3% to 27560 points, confirming its fall below terminal support at 28000 points, making a new daily low in this downtrend:
S&P futures are up slightly with Eurostoxx futures suggesting a minor blip higher on the open soon. USD strength continues to weigh on equities here but the inevitable bounceback should provide some volatility tonight:
Japanese stocks were the best in the region as the Yen sold off sharply versus USD, sending the Nikkei 225 2.2% higher to take back all of yesterday’s previous losses, closing at 22356 points. The USDJPY pair bounceback has been swift, breaching the high moving average on the four hourly chart and almost taking out the 111 handle. This takes it back above the multi-week uptrend line:
The ASX200 also benefited from the positive mood, lifting 0.7% to close one point shy at overhead resistance at 6300 showing there’s a lot more optimistic buying support below. The Aussie dollar however has shown no such optimisim, still on the ropes and below the 73 handle vs USD with no new session highs with a minor amount of support at the 72.60 level:
The economic calendar continues with German 2Q GDP and the ZEW survey.