Asian Stocks Mixed As Trade Concerns Remain Key, USD Higher
Asian Stocks Talking Points:
- Markets were mixed as Chinese stocks returned from their long holiday, Japan had one of its own
- The US Dollar scored haven gains against the Euro and Australian Dollar
- Trade headlines from Beijing are likely to drive this week
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The new trading week got off to a mixed start Monday with trade concerns still very much to the fore.
There was disappointment Friday when it seemed unlikely that US President Donald Trump would meet his Chinese counterpart Xi Jinping after all, but investors are now looking to high-level talks which are set to continue in Beijing this week.
Chinese stock markets had been out for most of last week thanks to the long Lunar New Year break. They returned with modest gains for Shanghai and Shenzhen. The Hang Seng inched higher. The region lacked Japanese participation as markets there were closed for a holiday. The ASX 200 managed to rise, while South Korea’s Kospi was in the red as its close approached.
The US Dollar attracted something of a haven bid in the face of trade worries, with the likes of the Australian Dollar and the Euro under pressure. EUR/USD is again approaching its lows for the year, struck last in late January.
However, support has been solid in this region since mid-November so the uncommitted may want to see whether it can survive another test before stepping into the market.
Crude oil prices slipped on news of an increase in operational US drilling rigs, while gold prices were a little steadier.
Monday’s remaining data slate includes a plethora of important UK numbers, including the official Gross Domestic Product release. Central bank watchers will await the European Central Bank’s Vice President Luis De Guindos. He is due to speak in Madrid.
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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.