A mixed start to the trading week here in Asia with Chinese stocks on the rise while Japanese and local stocks fall due to the lack of confidence transmitted by Wall Street on Friday night, not helped by the Labor Day weekend. Chinese private PMI figures helped boost the official ones while the next set of tariffs start to kick in – for US consumers of course.
The Shanghai Composite closed nearly 1.3% higher to finally get back above the 2900 point level at 2924 while the Hang Seng Index faltered and stumbled, falling nearly 0.7% to 25561 points. Pressure is building here as price moves below the low moving average on the daily chart, still anchored nearer the terminal low just below 25000 points:
Japanese share markets have sold off as Yen buyers stepped in, with the Nikkei 225 closing 0.4% lower to 20620 points. The USDJPY pair gapped down to the 106 handle on the open and was unable to recover throughout the session, still below the Friday session lowS:
The ASX200 also pulled back, lacking direction as traders remain concerned about tomorrows RBA meeting, closing 0.4% lower to fall back below 6600 points with the Australian dollar still trading in a tight band around the 67.30 point of control, at least not making any new session lows:
Eurostoxx futures are down as confidence evaporates, with the S&P500 four hourly chart still showing price unable to make a break for it above the 2940 point resistance level:
The economic calendar starts the week slowly with some tertiary releases and not much else as the Labor Day weekend in the US will also put a damper on trading overnight.