Not the bath of blood that the media (and me!) expected with the continued fallout from the US/China trade war hitting risk markets across Asia, but with some reservation from the bears. The PBOC moved the Yuan sharply lower against USD, the weakest all year while Yen stopped firming against USD.
The Shanghai Composite is set to close below 2900 points again, down 0.3% to 2890 points, at least forestalling a wider corrective move. In Hong Kong, the Hang Seng Index has reopened down 1.8% to just above 28000 points and is the worst performer in the region. Note how fast support evaporated once 29000 points was cleared:
US and Eurostoxx futures are fighting back however, the latter up by 0.5% with S&P futures indicating a possible bottoming action here as it bounces off the 2800 terminal support line:
Japanese share markets continued to fall which was no surprise given the drop in the correlated USDJPY pair overnight, with the Nikkei 225 closing 0.6% lower at 21067 points. During the session however, Yen has weakened with the USDJPY pair bouncing off the 109 handle and getting back to the Friday session lows:
Australian stocks had a bad start and then recovered somewhat before dropping at the close, with the ASX200 falling nearly 1% to be at 6239 points. The Australian dollar remains depressed, but is somewhat stable after making a three year low overnight and is still stuck here at the mid 69s:
The economic calendar