Asian Stocks Talking Points:
- Asian markets were trendless overall as a new week got under way
- Trade worries aren’t going away anytime soon, but some bourses managed to shrug them off
- The US Dollar was broadly higher as risk appetite remains slight
The DailyFX Third-Quarter Fundamental and Technical Forecasts are out now.
Asia Pacific equity markets were mixed on Monday afternoon with trade worries still keeping a lid on most bullish enthusiasm.
Friday saw US stocks wilt as the Administration said it was primed to impose still-further tariffs on Chinese imports, although the story seems to have rested there since and some regional bourses managed to shake off their own early falls. The Nikkei 225 was up 0.2% as its close approached, with the ASX 200 and the Kospi also in the green, if not by much. Chinese markets were still struggling, perhaps unsurprisingly, with both Shanghai and Hong Kong down, by 0.7% and 0.8%, respectively.
Monday’s economic data didn’t shake the markets. China’s inflation rose a shade higher than expectations but it probably remains benign enough to keep Beijing’s stimulus efforts on track. Japanese balance of payments data saw the Yen a little weaker, although GDP figures came in a little better than expected. Percived haven currencies were still in broad demand though, which limited damage to the Yen and saw the US Dollar broadly higher too. The greenback was still reaping some benefit from last week's strong US employment numbers.
Sweden's Krona didn't move far against the Euro despite clear signs that an election in its home coutnry was going to mean a hung parliament and gains for a euroskeptic party. It may however see stronger moves in the European session,
Gold prices slid, reportedly on the thesis that US interest rates will continue to rise, while crude oil prices rose thanks to last week’s news of a cut in operational US rigs.
Monday still offers plentiful UK economic data, from Gross Domestic Product to industrial production levels, but very little from anywhere else. The Pound is likely to remain focus on Brexit headlines, however, such as they are.
GBP/USD has risen quite sharply from its recent lows, but now seems to be topping out well shy of its mist significant previous peak.
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--- Written by David Cottle, DailyFX Research
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