Selloff in Asia Intensifies, Aussie and Kiwi Accelerate Down
New Zealand and Australian Dollar accelerates lower today as selloff in Asian stocks intensify. The development came on renewed concern over the third wave of coronavirus infections in Europe and return to lockdown. News regarding vaccines were also negative, as Hong Kong temporarily suspended Pfizer/BioNTech vaccination. Technically, Hong Kong...
AUD and NZD Tumble Following Risk Aversion in Hong Kong and China
Commodity currencies are generally weak in Asian session, together with Sterling. Stocks in Hong Kong and China are reacting negatively to joint sanctions by EU, UK, Canada and US over China's genocidal treatments of Uyghurs in the Xinjiang region. EU's action is seen as significant turning point in the...
Asian Markets Soften on Surging Oil Price, Dollar Firm
The Asian markets opened the week relatively mixed. Stocks gained initially on US Senate passage of the USD 1.9T stimulus bill. But sentiments are weighed down by concerns of inflation as oil prices jumped. Dollar is firm against Yen, Euro and Swiss Franc and look set to continue with...
China exports and imports jumped in Jan-Feb period, Hong Kong HSI not impressed
Released during the weekend, China's exports, in USD term, surged 60.6% yoy in the period of Jan-Feb, well above expectations of 38.9% yoy. Imports also rose 22.2% yoy, above expectation of 15.0% yoy. Trade surplus came in at USD 103.3B, much wider than expected USD 60.0B.
The impressive data could...
Asian Equities Move Modestly Higher
Asian equities move modestly higher
US markets played catchup to the Asian rally overnight, posting very impressive results overnight. The S&P 500 rose by 2.38%, the Nasdaq leapt 3.01%, and the Dow Jones rallied by 1.95%. Some profit-taking is evident in Asia, though, with the markets taking a breather. The...
Euro Weak With Dollar in as Stock Surge Further, Looks into German ZEW
Overall developments in the markets are unchanged as strong risk-on sentiments continue. Yen is currently the worst performer by a mile. Dollar, Euro and Swiss Franc are following behind. Sterling continue to stay strong together with commodity currencies. A focus today is on whether Germany ZEW economic sentiment and...
HK HSI surges with global stocks, targeting 32255 next
Hong Kong HSI follows global stocks higher as it's back from lunar new year holiday. It's up 1.8% or 543 pts at the time of writing. For the near term outlook will stay bullish as long as the lower side of the gap at 29828.61 holds. Current up trend...
Asian Equities Rise, Ignore US NFP
Asian equities start the week on a positive note
On Friday, the weak US data could not quash Wall Street’s fiscal stimulus animal spirits, which were helped along by a continuing stream of strong Q4 earnings releases. The S&P 500 rose 0.39%, the Nasdaq rose 0.57%, and the Dow Jones...
Equities Drift Higher In Asia
Hong Kong big-techs climb
The news that China has overtaken the US as the biggest destination for Foreign Direct Investment (FDI) appears to have lifted spirits in Asia this morning, with exchanges in Northern Asia mostly higher. The Nikkei 225 has risen 0.43%, while the Kospi has leapt 1.80%. China’s...
Asian Markets Surge With Strong Risk Appetite, Yen Under Heavy Selling
Asian markets are trading in strong risk-on mode today, with particular strength seen in Hong Kong. DOW future is also currently up 150 pts, as markets look forward to US Treasury nominee Janet Yellen's confirmation hearing. Yen is back under heavy selling pressure, followed by Dollar and Swiss Franc....
Asian stocks rally on US Yellen, HSI up more than 3%
Asian stock, except China, surge broadly today as US Treasury nominee, former Fed chair, Janet Yellen is report to adopt an "act big" stance on fiscal stimulus. Commodity currencies are trading broadly higher, as led by Australian Dollar. Yen, Dollar and Swiss Franc are back under pressure.
Yellen will appear...
China GDP grew 6.5% in Q4, but Dec data mixed
China's GDP grew 6.5% yoy in Q4, accelerated from prior quarter's 4.9% yoy, beat expectation of 6.1% yoy. Overall, GDP grew 2.3% in 2020, making it the only major economy that avoided a contraction, due to the coronavirus pandemic that started with outbreak in Wuhan.
December data were mixed. Industrial...
Stocks Surge on US Elections, Dollar and Yen Weak But No Follow Through Selling Yet
Movements in the forex markets in reaction to the US elections were relatively indecisive, comparing to the strong risk-on moves in the stocks. There is no clear follow through selling in Dollar and Yen so far, while commodity currencies are struggling to extend gains. Focuses will now turn to...
Hong Kong HSI surges on optimism over US-China relations
Hong Kong stocks responded exceptionally well to US election results, which could an indication on optimism over US-China relations going forward. This week's rally suggests that rise from 23124.25 is the third led of the pattern from 21139.16. Test of 26782.61 resistance should be seen next. Firm break there...
Asia rebounds on Trump’s health improvement, HSI capped by resistance
Major Asian markets open higher today on optimism regarding US President Donald Trump's health condition. His doctors indicated that the coronavirus symptoms are resolving and improving. Trump could be discharged from hospital as soon as on Monday. Separately, Trump also left the hospital on Sunday evening and waved to...
Markets Stabilized after Selloff, Dollar Rally Still Unconvincing
Asian markets are trading mildly lower today, following the weakness in US overnight. While DOW dropped more than -900 pts during the session, it managed to pare back half of the losses to close down -509.72 pts only. Following that, Dollar and Yen retreated some gains while Gold also...
Dollar to End Week as Strongest, Subject to NFP Reactions
Asian markets are generally in red following the steep corrective selloff in the US overnight. The forex markets are relatively steady though, with Dollar and Yen trading with a firm tone. Australian and New Zealand Dollars are the weakest ones, followed by Sterling. Over the week, Dollar is set...
Hong Kong HSI breaks near term channel with sharp decline
Asia markets open sharply lower, following the selloff in US overnight. The -1.8% decline in Hong Kong HSI (at the time of writing) looks tiny comparing to the near -5% decline in NASDAQ. But the technical development is much more bearish.
The index survived all the political turmoils in the...
Money Moves To HK. USD Steady Pre-Jackson Hole. Lira Buyers Unconvinced By News Of Black Sea Oil
Asian markets opened the week on a slightly upbeat note following a positive close in the US on Friday. Stocks in Sydney (+0.14%) and Tokyo (+0.05%) were flat, and the Hang Seng (+1.84%) led gains as investors swapped their US-listed Alibaba shares for the Hong Kong shares to avoid...
Yields Surged, Gold Corrected, But Dollar Got No Lift
It was a rather mixed week where there were conditions for a Dollar rebound, with surging treasury yield and correction in Gold. Yet, no apparent rally was seen. Yen was sold off generally, partly on coronavirus and recovery optimism. But the Swiss Franc was firm together with Euro.
Strong rally...
More Fiscal Stimulus Coming In The US
Market movers today
CPI figures for July in Denmark and Norway are the highlights of the day on the data front. We expect Danish CPI inflation to plunge to 0.0% in July (from 0.3% in June), after the government's summer package reduced prices for a range of cultural experiences. In...
Dollar Trying For Rebound after Trump’s Combination Move Against CCP
Dollar was under pressure most of the week on risk-on sentiments. NASDAQ gapped higher and marched to new record highs. Nevertheless, the greenback staged a notable comeback after combination move by the US administration against the Chinese Communist Party, with bans on TikTok and WeChat, as well as sanction...
Week Ahead – Sino-US Tech War Heats Up
Country
US
Further evidence could show that coronavirus is getting under control in the US. New cases and hospitalizations have been declining, however testing slowed down drastically in the east coast due to Hurricane Isaias. On Wednesday, inflation data is expected to come back down to earth. Headline inflation should drop...
Equities Wilt On Trump Executive Orders
Asian markets retreat on Trump threats
Wall Street stock indices rose overnight, but that has been quickly forgotten in Asia, with regional markets wilting under the deluge of US executive orders regarding Chinese companies this morning. A surge in Chinese exports announced today, has also been lost in geopolitical noise.
The...
Asian stocks tumble as Trump moves to ban TikTok and WeChat, HSI down -2.2%
Asia markets tumble broadly, particularly serious in Hong Kong, after US President Donald Trump issued an executive order to ban China's TikTok and WeChat apps. The orders will go into effect in 45 days, and block all transactions with TikTok's owner ByteDance, and transactions involving WeChat. The move was...
After Buying Spree In US, Asia Is Cautious
Asian equities are cautious today
The buy everything trade was in full flight overnight, with Wall Street enjoying a strong session. That sentiment has not passed into Asia, which appears to be adopting a much more cautious stance, with regional stock markets a mixed picture today.
The Nikkei 225 has eased...
Week Ahead – Is the Economic Recovery Stalling?
Country
US
Possible further evidence that the US economy is stalling could continue to take a bite out of risk appetite. On Monday, the ISM manufacturing reading is expected to show the rebound continues, with textile mills, wood products and furniture leading the way. The virus spread however will drag down...
Elliott Wave View: Hang Seng Index Correction In Progress
Hang Seng 15 minutes chart below shows that the index has extended lower from July 7 peak. The decline is unfolding as a double three Elliott Wave Structure. From July 7 high, wave W ended at 25570.36 low. The bounce in wave X ended at 26103.84 high. The pair...
Week Ahead – What More Can the Fed Do?
Country
US
The risks to outlook have grown and the Fed may be ready to do more. After an unexpected rise in jobless claims and as US coronavirus cases continue to spread across the Sunbelt, concerns are growing that the economic recovery is stalling. The Fed may signal their emergency programs...
Stock Rally Despite Mixed Corporate Earnings
US stocks have returned to growth after a wobbling session on Wednesday. During the turbulent session, investors focused on mixed quarterly reporting and the debate over further stimulus. The benchmark S&P 500 index rose 0.62%, and Dow added 0.57%. Nasdaq was more modest, securing a gain of 0.24%. Still,...