It’s been a bounceback day here in Asia for stock markets at least, as fear swings back to hope, helped by the Chinese propaganda surrounding growth prospects viz. coronavirus, while the ratings agencies continue to downgrade 1Q 2020 growth across the region. The true arbiter is gold, which continues to climb above $1600USD per ounce, while the PBOC has weakened Yuan considerably with a 7+ fix, as offshore trading breaks out:
The Shanghai Composite is currently up 0.3% after its long lunch break, almost crossing over the 3000 point barrier while the Hang Seng Index is up 0.4% to 27641 points as it holds on to short term support:
Japanese share markets are leading the bounce with the Nikkei 225 gaining 1% so far to 23422 points, trying to claw back its recent losses. The USDJPY pair is bursting higher too as Yen buying abates, sneaking just above the 110 level but not quite above the previous weekly high:
The ASX200 is currently up nearly 0.4% at 7135 points, beginning to gain traction above the 7100 barrier. This is despite a rebound in the Australian dollar which became extremely oversold overnight, but is still unable to get back above the 67 handle against USD:
Eurostoxx and S&P futures are bouncing back, with the four hourly chart of the S&P500 showing a lift off of trailing ATR support after almost fulfilling the bearish rising wedge pattern that has been slowly forming since the last minor dip:
The economic calendar includes both UK and Canadian CPI prints for January, then the release of the latest FOMC minutes.