A mixed day here in Asia as Japanese stocks take a dive while locally, the ASX200 is supported by the almost baked in rate cuts coming for the Australian dollar as the GDP print comes in lower than expected.
The Shanghai Composite is the standout, up 1% going into the close and remaining well above 3000 points at 3083. The Hong Kong Hang Seng Index is up slightly, about 0.2% to get just over 29000 points as it still tries to pull itself out of a near week long malaise after rising too fast from its recent trend line:
US and Eurostoxx futures are falling as caution turns to concern with the S&P 500 four hourly chart looking like reverting below last week’s session lows at 2780 points, as the 2800 point level remains too far a stretch and will act again as staunch resistance tonight:
Japanese stock markets were the worst performers again as Yen strengthened and risk took a holiday, with the Nikkei 225 currently down nearly 0.7% to around 21570 points, almost making a new weekly low as a result as it continues to align with other risk markets. The USDJPY pair is slipping after failing to find strength overnight, rejecting overhead resistance at the 112 handle – watch the low moving average carefully tonight:
The ASX200 has surged over 0.6% on the back of the lower Australian dollar following the GDP print, currently just short of the 6240 point level. The Australian dollar was already on a tear down before the GDP print, but really gathered pace as the release came out, taking out a key weekly support level at 70.60 – this is ominous indeed as the rate cut forecasts pile in:
The economic calendar is a bit lighter on tonight with the Canadian central bank decision the only release of note, plus the latest DOE oil inventory report.