Not the best rebound here in Asia with Chinese stocks selling off as other bourses reacted meekly to the overnight move higher in US markets. The ASX200 did the best however, but its looking tenuous going into tonights session.Yields are coming down a little though on Treasuries and the USD is gaining against the majors which should provide some impetus for risk taking.
In mainland China the Shanghai Composite has fallen nearly 2%, closing just above terminal support at 3300 points. The Hang Seng Index is off 0.6% to 30415 points, after looking like making a better start according to futures, but failing to gain any traction. Support at 30000 points is coming up shortly:
S&P futures are slowly building here but really need to breach the 2680 point level to have any traction, or we’re off to the selling yard again:
Japanese stocks put in a very small bid higher with the Nikkei 225 closing up 0.2% after yesterday’s epic 6% loss, closing at 21645 points. The USDJPY pair has retreated below the low moving average band after remaining above the 109 handle overnight:
The ASX200 was one of the best in the region, gaining 0.7% to 5876 points, where the next stage has to be a close above the psychological support level at 6000 points. The Aussie dollar continued to go a little lower, currently at the 78.80 level, but note how it has been unable to get above its own high moving average, so we’re likely to see another retracement:
The economic calendar continues with a DOE crude oil inventory report then some Treasury auctions before the RBNZ meets first thing in the morning.