A mixed start to the week here in Asia with most stock markets off but Japanese shares finish in the green due to a slightly weaker Yen. A slightly hotter than expected CPI print in China has taken the floor out of Chinese shares while the offshore Yuan was again sold off as the PBOC set the official rate weaker.
The Shanghai Composite has started the week poorly, currently nearly 1% lower to 2678 points as it falls below what was support at the 2700 point level. The Hang Seng Index is down ever further, off almost 1.3% to 26621 points, taking out the previous daily lows struck in early August as its correction continues:
S&P futures are relatively steady while the Eurostoxx are indicating a small retracement on the open in the City shortly. The four hourly chart of the S&P500 is still indicating a fall back down to 2870 or so for this leg:
Japanese stocks are the odd ones out as Yen remained relatively weak throughout the session, with the Nikkei 225 closing 0.3% higher at 22373 points. The USDJPY pair is trying to get back above the 111 handle, with Friday night’s rebound still on the cards to be followed through on the City open later on, where I’m watching 111.20 closely:
The ASX200 rounds out the mixed results for the region, only losing 1 or 2 points to put in a scratch session, closing at 6141 points. The Aussie dollar remains depressed but has not followed through on the Friday night slump, still holding on vainly just above the 71 handle:
The economic calendar starts the week quietly with a slew of UK secondary prints, but not much else, plus the usual weekly Treasury auctions.