Following the rout in tech stocks in the US overnight, Asian bourses have fallen throughout the session as risk appetite dissapates. Governor Kuroda at the BOJ has ruled out any further easing of its negative interest rate policy which kept Yen relatively stable while the Aussie dollar fell on the latest RBA minutes.
The Shanghai Composite is down 1.6% to 2660 points going into the close as it failed to build above key support at the 2600 level. The Hang Seng Index is down even further, losing 2% or so to 258360 points, flopping below the previous support level at 26000 points as this correction still can’t find a tentative bottom:
US and Eurostoxx futures are falling with the four hourly S&P 500 futures chart showing a reversion back to the previous week’s low at the 2680 level – below the recently untouched monthly uptrend line:
Japanese stocks have fallen as well despite the stability in Yen, with the Nikkei 225 closing 1,1% lower to 21546 points. The USDJPY pair is trying to stabilised here at the mid 112’s after last night’s solid bid in Yen and is considerably oversold:
The ASX200 is the best perfromer in the region, relatively, down only 0.4% or so to 5671 points, still following through on its inability to finish last week back above the 5700-5800 point support area as buyers continue to desert. The Aussie dollar has fallen here on the back of the hawkish RBA minutes, taking it back to last Friday’s starting point with possible falls to previous resistance, now support at the 72.30 level :
The economic calendar has a few housing figures from the US tonight, including building permits and housing starts.