While it’s merely a cease-fire for 90 days agreement between the US and China, Asian markets’ responses are overwhelmingly positive. At this point, China SSE is up 2.91%. Hong Kong HSI is up 2.68%. Nikkei is up 1.46% and Singapore Strait Times is up 2.12.%.
The HK HSI gaps up sharply and is now rising 2.68% at 27217.25. The development is rather positive as rebound from 24540.63 medium term bottom should extend to 27957 fibonacci level next, which is close to 28000 handle.
USD/CNH also dips to 6.892 as the off shore Yuan rebounds. Though, it’s quickly back above 6.91 as there is no follow through buying. And. Technically, sustained break of 55 day EMA is needed to indicate that Yuan has bottomed in medium term (or USD/CNH topped in medium term).