Asian Stocks Bounce Back As New Week Starts, US Dollar Firmer
- Asian stocks were mostly higher
- Chinese markets remain out for holiday while the US will also be absent Monday for a break
- The US Dollar’s slide was arrested but it remains under pressure
New to financial market trading? The free DailyFX Guide was written for you.
Asian stock markets rose Monday, tracking the extension of the S&P 500’s winning streak to six days on Friday.
Investors were caught to soem extent between the ongoing Chinese New Year break and the fact that Monday is a US holiday too. Still, there was plenty of green on the screens with the Nikkei 225 up by 1.9% and Australia’s ASX 200 0.6% higher, the latter having overcome early losses.
The US Dollar found a floor as a new week got under way and managed to hold above last week’s three-year lows against its major traded rivals. The greenback enjoyed a modest boost against the Japanese Yen as trade data from the latter’s homeland showed extremely robust exports. Clouds of potential protectionism still glower however as the White House mulls a range of tariff options on imported steel and aluminum, bringing a storm of objections from China, South Korea and Japan. Staying with trade, there were reports through the session that the US, Japan, Australia and India were considering a rival to China’s ‘belt and road’ initiative.
Crude oil prices rose with Asian equity and as investors nervously eyed still-rising tensions between Israel and Iran, with direct confrontation between the two apparently more likely. Brent crude hit two-week highs. Gold prices slipped back as the US Dollar firmed.
There’s not a lot left on Monday’s economic data schedule. Current account and construction output figures from the Eurozone are coming up but that’s about it.
--- Written by David Cottle, DailyFX Research
Follow David on Twitter:@DavidCottleFX or us the Comments section below to get in touch
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.