Asian stock markets are quite mixed across the region with local shares buoyed by Westpac’s call for two more rate cuts by the beleagured RBA, which sent the Aussie dollar down, while Chinese stocks continued their pullback as the Yuan fix hovered around the 7 handle. No news on the US/China trade deal is good news overall however.
The Shanghai Composite is again barely hanging on to a positive result to be just above the former 2900 points resistance level. The Hang Seng Index is also hovering around its own resistance zone at 27000 points, falling 0.1% to 26894 points. The daily chart is tentatively bullish but no firm technical signs of a sustainable trend:
Japanese share markets had another solid push, helped by a weaker Yen throughout the session with the Nikkei 225 closing 0.3% higher to 23437 points, as it continues to build above daily support at the 23000 level. The USDJPY pair is slowly eking out more gains here above the 109 handle and remains on trend from its low from mid last week, although short term momentum is waning going into the City session:
The ASX200 was again the best in the region, closing 0.9% higher and cracking right through the 6800 points barrier, helped along by a solid reversal in the Pacific Peso. The Aussie dollar was trying to find a bottom here but has been thwarted by the very dovish Westpac call as it returns back to last week’s extreme low at the 67.70 level:
Both S&P and Eurostoxx futures have advanced with the S&P500 four hourly chart showing price intentions to move higher from last night’s record closing level as the FOMO doubles down:
The economic calendar will be dominated by the release of 3Q GDP results from the US tonight.