See the latest Australian dollar analysis here:
A strong finish to the week here in Asia with all stock markets rising in response to the lifting tide from Wall Street overnight as the positive rhetoric surrounding a new Chinese-US trade deal smooths over the stark unemployment situation developing in the US. Tonight’s non-farm payroll (NFP – US official unemployment) will be crucial to imbibe those risk spirits for the rest of May as delusion over the too-soon re-opening of the US economy from the coronavirus continues to settle in around financial circles.
In mainland China, the Shanghai Composite is up nearly 1% to 2900 points, while the Hang Seng Index is similiarly up 1% to 24219 points, bouncing off the recent daily lows at 23400 points and setting up the daily chart to re-engage for another breakout next week:
Japanese share markets were the main catalyst for the positive mood with the Nikkei 225 surging 2.5% higher to 20179 points, making a new weekly high and almost breaking its bear market rally high. Meanwhile currency traders are caught in a bind with Yen strength, as the USDJPY pair hovers just above the 106 handle in a very weak swing move that doesn’t have much momentum:
The ASX200 was the relative laggard, closing only 0.5% higher to 5391 points, not helped by a much higher Aussie dollar on the back of a very optimistic SOMP from the RBA released today which sent the Pacific Peso soaring higher after its big lift overnight, now above the 65 handle and making a new weekly high:
Eurostoxx and S&P futures are up more than 1% going into the London open with the latter market ready again to tackle the previous highs near the 2960 point level, as momentum crosses over into positive territory:
Have a good weekend and stay safe!