Asian Stocks Mixed, Diplomacy In Focus, EUR Eyes German CPI
- Asian markets were broadly higher Thursday
- Only the ASX 200 failed to share in the gains
- Markets seem hopeful that both trade and North Korea are issues which can be solved
Asian stocks traded mixed Thursday with some indexes managing to shrug off more Wall Street weakness overnight in a quiet session for local economic data.
There seemed to be some better diplomatic news around, too whch may have helped. China claimed Wednesday that it had obtained pledges from North Korea over the de-nuclearisation of the Korean peninsula. Now Japan has said it wants a bilateral meeting with the North Koreans.
US tech stocks had another torrid session but Asian indexes managed to shrug that off and focus on local news.
Trade issues continue to bubble away, with wires reporting that China was considering higher tariffs on imports of US soybeans. US President Donald Trump signed a memorandum earlier this month that could add $60 billion in trade barriers to Chinese goods.
Still., the Nikkei 225 added 0.6% with shares in Shanghai Hong Kong and South Korea also higher. Australia’s ASX 200 was the notable laggard, shedding 0.5%.
The US Dollar was weaker against the Japanese Yen on Thursday, fading after the previous session’s strength. Crude oil prices rose again, reportedly on expectations that OPEC will continue to abide by production cuts throughout 2018.
Gold prices meanwhile steadied after the previous sessions heavy falls which had taken them down to one-week lows. Spot gold seems from its daily chart to have suffered another failed upside test, putting obvious focus back in support levels in the $1306 area. This region has provided support for the yellow metal for 2018 to date.
Still to come Thursday are a final look at UK GDP for 2017’s last quarter, the official German Consumer Price Index for March and Canada’s growth figures for January. Those German numbers could offer the Euro some support if they come in as expected.
The US will dominate proceedings though, with personal income and spending numbers on tap along with initial jobless-claim figures and the University of Michigan’s consumer sentiment indicator.
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.