Asian share markets had a good start to the week today with green across the board, helped by the very positive sentiment on Wall Street on Friday, and a much stronger USD against domestic currencies. The ASX200 almost closed above 6000 points helped by a lower Aussie dollar in response to the Chinese GDP print and trifecta of key secondary indicators released today.
Indeed, Chinese shares are in a positive mood with talk of stimulus and a weaker Yuan helping everywhere. The Shanghai Composite is up nearly 0.7% going into the close, currently at 2610 points with the Hang Seng Index also climbing, up 0.2% to 27152 points. The daily chart shows how important it is for the market to really push through the previous falsebreak high above 27100 points:
US and Eurostoxx futures are down slightly going into the London open with the four hourly S&P 500 futures chart still showing a market with the bulls still in control, but a small pullback would do well for a sustained uptrend:
Japanese stock markets were mixed with the TOPIX up 0.4% while the Nikkei 225 only up 0.15% or so to 20697 points. This was mainly due to a pullback in the USDJPY pair as it gapped down slightly over the weekend, remaining in the mid 109’s but finding some intrasession support here. There is the possibility of a pullback to that lower trendline as Friday night’s action was too far, too fast and an overreach:
The ASX200 finished 0.52% higher to 5890 points, really getting some positive momentum now as it builds over the 5800 level and looking quite bullish on the daily chart. The Aussie dollar fell back a little slightly on the open before a late rally this afternoon, still below the 72 handle but respecting very solid support at the 71.50 level:
The economic calendar stars the week slowly with all eyes still on Brexit and Trump’s government shutdown.