FXstreet.com

Asia Market Update

0

0

The Hang Seng and Nikkei lead Asian equities lower

Wed, Oct 8 2008, 07:58 GMT
by Eben Esterhuizen

TradeTheNews.com


Trade The News

Real-time 24hr global markets news in both audio & text formats. Free Trial.

Forex: Volatility in FX majors was suspiciously subdued in Wednesday's Asian session in spite of the rout in Far East equity indices. USDJPY was tightly rangebound just above 101 figure, allowing yen crosses to bounce off their recent lows. EURUSD hovers just below the 1.36 handle with the dollar also paring its recent gains against GBP and CHF. Renewed downside in the former appears to be constrained by 1.7430 intraday support while the selloff in the latter remains suspended on approach to USDCHF $1.15 handle. Australian dollar appears to be the outperformer among the majors, finding support at AUD0. 7050 followed by a breach of AUD0.71 against the greenback. AUD is also rising relative to EUR, GBP, JPY, and NZD. Aussie rally is particularly noteworthy in light of poor economic data from Australia that saw a -2.2% decline in monthly home loans and a sharp 11% drop in Westpac Consumer sentiment, as traders remain enthused by the prospects of an impact from a much wider rate cut on the Aussie economy. Over in Asia's emerging markets, South Korean Won is under immense selling pressure with USD/KRW rising above 1,300 - a 7 1/2 year low for the Won. Testimony from South Korea's central bank official revealed efforts to secure loans to raise funds in the face of an ongoing liquidity drain. USDSGD continues to struggle with $1.47 handle while Taiwan dollar was pressued by central bank's warning of an unscheduled policy meeting if conditions demand it.

- Asian Equities: The Nikkei 225 is lower by more than 4.5% and trading below 10, 000. Declines in Tokyo are being led by shares of Toyota Motor, whose shares are declining by more than 6% following an unconfirmed report in the Nikkei news that the company's FY operating profit could decline by 40% versus the prior year. Other decliners in Japan include shares of banks and steel makers. The S&P ASX 200 is declining by more than 4%, despite the RBA's recent larger than expected interest rate cut. Declines in Sydney are being led by financials and miners. The Kospi is off by more than 3%, led by declines in shares of industrials, technology companies and banks. The Shanghai Composite is lower by more than 3%, led by weakness in financial companies. China's largest property developer, Vanke's share are lower by more than 3% on reports that its September sales declined sharply. In other Asian equity trading, the Hang Seng is declining by more than 5.5%, the Taiex is close to 4.3% lower, the Straits Times is lower by close to 4% and the Jakarta Composite is off by more than 9%.

- Commodities: Crude oil prices are lower by more than 1%, tracking the weaker equities. Spot Gold is gaining by more than 0.20%, but is well off of the session's best levels.


Trade The News, Inc.  | 11 Broadway, New York, NY 10004
http://www.tradethenews.com/products-forex.asp?fxst | jessica@tradethenews.com

Legal disclaimer and risk disclosure

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Related reports

Daily Forex Technical Report by ActionForex.com
Tue, Dec 2 2008, 15:26 GMT

Foreing Exchange - USDCHF: Key resistance remains 1.2354, the March 2007 high by Avantage Financial GMBH
Tue, Dec 2 2008, 14:32 GMT

Currency Majors Technical Analysis by Mataf.net
Tue, Dec 2 2008, 14:11 GMT

Special Focus - USDCHF: Rally Off The 0.9639 Level Set To Strengthen Further by FXTechstrategy
Tue, Dec 2 2008, 14:10 GMT

Insights Market Outlook - Monetizing the Debt by Merk Hard Currency Fund
Tue, Dec 2 2008, 13:39 GMT

aud, eurusd, europe, jpy, markets, nikkei, commodities, usdchf, equities, asia, nzd, usdjpy

View All

Related content

Glance-STOCKS NEWS EUROPE-Q-Cells rebounds; helped by guidance
Thomson Financial News | Tue, Dec 2 2008, 16:29 GMT

COLUMN-Dollar demise much exaggerated: John Kemp
Thomson Financial News | Tue, Dec 2 2008, 14:58 GMT

UPDATE 3-Nigeria 09 budget deficit set to rise, oil income fall
Thomson Financial News | Tue, Dec 2 2008, 14:05 GMT

Euro Rebounds Vs Dollar As Oil Prices Eclipse $50/Bbl
Dow Jones | Tue, Dec 2 2008, 13:56 GMT

FACTBOX-Inflationary pressures in the euro zone
Thomson Financial News | Tue, Dec 2 2008, 13:38 GMT

aud, eurusd, europe, jpy, markets, nikkei, commodities, usdchf, equities, asia, nzd, usdjpy

View All

Interested in forex trading? forex brokerage firms!


FOREX.com
Contact the broker/FDM
Open a demo account
MG Financial Group
Contact the broker/FDM
Open a demo account
Deutsche Bank
Contact the broker/FDM
Open a demo account
Alpari (US), LLC
Contact the broker/FDM
Open a demo account
MIG INVESTMENTS SA
Contact the broker/FDM
Open a demo account

FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)

[Read Premium full description]

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2008 "FXstreet.com. The Forex Market" All Rights Reserved.