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Asia Pacific Markets Talking Points
Equities mostly sink in Asia as trade war fears overshadow dovish Fed betsS & P 500futures hint further pessimism to come ahead as anti-risk Yen gainsASX 200may top given bearish technical signals despite RBA rate cut bets Find out whatretail traders' equities buy and sell decisionssay about the coming price trend!
Pessimism from Wall Street echoed into Thursday's Asia Pacific trading session, with most regional bourses aiming lower. Softer-than-expected US inflation data, which fueled more dovish Fed monetary policy expectations, did little to distract traders from the threat of trade tensions between Washington and Beijing.
TheNikkei 225 , Japan's benchmark stock index, traded about 0.6 percent lower heading into the close. Information technology shares underperformed, and video game maker Nintendo slumped. The latter announced yesterday that it is moving some console production out of China amidst trade wars.
Australia's ASX 200 was close to little changed as it was offered some relief by rising expectations of a cut from the Reserve Bank of Australia, again. Alackluster employment reportsent local front-end government bond yields falling, with the 3-year dropping below one percent for the first time on record.
In Hong Kong, the Hang Seng Index slumped about 0.9%, extending declines from yesterday asextradition protests continuedand as one-month HIBOR climbed to its highest since 2008.USD/HKDhas seen aggressive declines as of late after flirting with theHKMA's weak-side convertibility undertaking .
S & P 500 futures are pointing decisively lower, hinting that risk aversion may prevail over the remaining 24 hours. As such, the anti-riskJapanese Yenmay extend gains as Wall Street gaps lower. This would pose to bode ill for the pro-risk Australian and New Zealand Dollars, which are already lower.
ASX 200 Technical Analysis Taking a closer look at the ASX 200, the index recently left behind a Shooting Star candlestick, which is a sign of indecision. Meanwhile, negative RSI divergence warns that upside momentum is fading. As such, technical signals are warning of a top that could be in the making. For medium-term conviction, keep an eye on the rising channel of support going back to February on the chart below.
ASX 200 Daily Chart
Chart Created in TradingView
FX Trading ResourcesSee how equities are viewed by the trading community at theDailyFX Sentiment Page Just getting started?See our beginners' guide for FX traders Having trouble with your strategy?Here's the #1 mistake that traders make --- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com
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