A much better day for share markets here in Asia with a minor rebound following yesterday’s big selloff across the region. The RBA meeting resulted in a hold and small blip higher for the depressed Australian dollar, while Yen continued to selloff giving domestic Japanese stocks a lift.
The Shanghai Composite stabilised a little, lifting about 0.6% going into the close at 2763 points. The Hang Seng Index is doing the best, up nearly 1.2% to 26670 points, with price bouncing off the December lows, but this has all the hallmark of dead cat bounce:
Japanese share markets are clawing their way back with the Nikkei 225 closing 0.4% higher at 23064 points, just slightly above its recent monthly low. The USDJPY pair is slowing rising higher in a typical swing play with lots of resistance at the 109 level above:
The ASX200 was the relative loser in the region, gaining only 0.3%, still remaining under 7000 points to close at 6948. The Australian dollar bounced off the bottom formed at or around the 67 handle with the RBA hold resulting in a 30 pip move higher. This is not that remarkable and could presage a swing up to trailing ATR resistance, but with commodities under a lot of buying pressure, probably temporary:
Eurostoxx and S&P futures are gaining strength with the four hourly chart of the S&P500 indicating another swing move higher tonight as the market wants to get back to the 3300 point level:
The economic calendar is relatively quiet tonight – apart from the State of the Union “speech” – plus some final figures for US durable goods and factory orders.