Asian markets continue their positive start to the week, except locally where political shenanigans bordering on Italian style turnstiles and backknivery. Outside Australia stocks were generally positive as the reversal in USD strength continued, helped by a much stronger Yuan setting by the PBOC. There’s short squeezing everywhere in the majors, particularly Pound Sterling but also Euro and Aussie that should set the scene for a volatile FX market tonight.
The Shanghai Composite continues its rebound, closing nearly 1.3% higher to 2733 points, getting back above the previous weekly support at the 2700 point level. The Hang Seng Index is also building on its near 1% bounce from yesterday, up 0.4% to 27699 points, just below its own terminal support at 28000 points, but beginning to show tentative signs of a pause in its own correction:
S&P futures are flat with Eurostoxx futures down by 0.1% going into the City open. USD weakness is still a factor here, but price action on the four hourly chart looks somewhat exhausted as it approaches the weekly high around the 2860 level:
Japanese stocks were mixed and remain quite cautious as the Yen appreciates against USD again providing a headwind. The Nikkei 225 closed 0.1% higher at 22219 points, still treading water on its daily chart. The USDJPY pair has been unable to get back above the 110 handle which is proving stern resistance since the breakdown last night:
The ASX200 fell sharply on the leadership spill, closing about 0.9% lower to 6284 points, getting back below previous resistance at the 6300 point level as the stronger Aussie dollar doesn’t help either. The Pacific Peso is making good on its bounce, now through the mid 73 handle continuing its mid-week surge from last week, and about to hit resistance at the 74 handle:
The economic calendar continues to be relatively quiet tonight with some secondary UK financial data the only releases of note.