Risk markets across Asia are surging back on the depositor bailout of SVB bank with interest rate markets now discounting a full 25bps rise by the Fed next week as they ease off the throttle amid financial contagion risk. Asian stock markets are somewhat mixed however with Chinese bourses moving higher with Wall Street futures also indicating a big fill tonight, but local stocks have suffered a little. Currency markets are selling off USD sharply with the Australian dollar pushed well above the mid 66 cent level while oil prices are slightly higher with Brent crude sneaking up above the $83USD per barrel level. Meanwhile gold has zoomed higher following its Friday night bounce, almost threatening the $1900 level at one stage, currently overextended at the $1880USD per ounce level in later afternoon trade:
Mainland Chinese share markets are surging following the long lunch break, with the Shanghai Composite up nearly 0.8% but still unable to break the 3300 point barrier at 3254 points while the Hang Seng has clawed back most of its Friday losses, currently up more than 2% to 19756 points. Japanese stock markets however remain caught in a Yen headwind with the Nikkei 225 down more than 1.5% lower at 27714 points while the USDJPY pair has gapped lower with a steep fall back to the 134 level on the back of the Friday night volatility:
Australian stocks were unable to escape the selling with the ASX200 about to close nearly 0.5% lower to stay well below the 7200 point level at 7112 points. The Australian dollar like other undollars gapped higher and then has surged in afternoon trade, currently above the mid 66 cent level:
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