Wall Street continued its solid run on Friday, led by a surge in tech stocks as the latest economic data improved risk sentiment across the complex, although European shares lagged. The USD pushed back a little against the majors with Euro pulled below the 1.09 handle while the Australian dollar was unable to advance further above the 71 cent level. US bond markets saw a small selloff with 10 year Treasury yields up slightly to just above the 3.5% level while the commodity complex saw oil prices go nowhere in anticipation of the upcoming OPEC+ meeting as Brent crude finished down to the $86USD per barrel level. Gold pulled back from its recent weekly high to finish below the $1920USD per ounce level.
Looking at share markets in Asia from Friday’s session where Chinese share markets were closed for Lunar New Year holidays while the Hang Seng was still advancing after its big return on Thursday, closing up 0.5% at 22680 points. The daily chart shows a clear breakout after building up a series of steps with daily momentum well overbought and ready for new highs as the 23000 point level remains the next target:
Japanese stock markets were still treading water however, with the Nikkei 225 barely moving at 27382 points. After bottoming out at the 25000 point level the recent positive correlation performance with Wall Street is helping lift price action back to the November highs, but not yet above. Clearing daily ATR resistance and getting daily momentum back into overbought mode should set up a further move higher to the 28000 point level next, but price action is cooling down here:
