|

Asian stocks broadly higher as risk aversion ebbs

  • Asian equities remain bullish for Friday as investor confidence continues to bid higher as trade war fears ease.
  • Chinese markets are experiencing a much-needed rally after spending much of 2018 deep in bearish territory.

The Pacific Asian market session is seeing a broad-base recovery extend its climb through Friday as fear-weary investors bid up risk assets in a renewed bout of risk appetite that has extended through the majority of this week.

Stocks have been seen broadly higher this week, albeit with a few caveats in marginalized tech sectors and specific avenues in the emerging markets space. 

The latest round of tariffs in the tit-for-tat trade spat between the US and China were counter-intuitively well-received by broader markets after the US' $200 billion in tariffs were only slated at 10% instead of 25%, and risk appetite remains bid as investors await China's promised response, while a further raft of $267 billion in tariffs from the US is being preemptively threatened by the US presidential administration.

Japan's Nikkei 225 is up a healthy 0.85%, with Tokyo's Topix index up a similar 0.90% for Friday, with the Australian ASX 200 more sedate but still positive, up 0.25%, with the broad Asia-Pacific MSCI index also up 0.25% for the day; in China, investor confidence remains on the high side, with Hong Kong's Hang Seng index is in the green 0.95%, with Shanghai's CSI 300 index pinned into 1.30% for Friday.

Nikkei 225 levels to watch

The Nikkei 225 index is trading into 23,670, sitting close to the week's peak of 23,840. The Nikkei remains well above the week's open of 22,650, claiming the 23,000 major technical level, which has kept the bourse under wraps since May of this year. Resistance points remain thin until January's all-time highs of 24,130, and buyers will be looking for the 23,000 handle to rollover into a support level going forward.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

More from Joshua Gibson
Share:

Editor's Picks

AUD/USD edges higher above 0.7050 as hot CPI lifts RBA rate hike odds

The AUD/USD pair gathers strength to near 0.7055 during the Asian trading hours on Thursday. The Australian Dollar edges higher against the US Dollar as hotter inflation data bolsters expectations of Reserve Bank of Australia rate hikes. The US September Personal Consumption Expenditures inflation report will be in the spotlight later on Thursday.



USD/JPY retakes 158.00 as USD stalls the post-FOMC corrective slide

USD/JPY attracts some dip-buyers during the Asian session on Thursday, climbing back above 158.00 as the US Dollar reverses part of the post-FOMC pullback from a two-week high. Bulls, however, await key US macro data – the Advance Q3 GDP and the PCE Price Index – before positioning for further gains. Focus will then shift to the crucial BoJ policy update on Friday amid firming expectations for a December rate hike.

Gold weakens further below $4,050 amid Fed rate hike bets and Iran risks

Gold sticks to intraday losses below the $4,050 level heading into the European session ,and for now seems to have snapped a three-day winning streak to the weekly top set the previous day. The US Dollar attracts fresh buyers after Wednesday's post-FOMC corrective slide from a two-week high and is seen as a key factor weighing on the precious metal.

US GDP expected to grow at 3.2% in Q3

The United States Bureau of Economic Analysis is set to publish its preliminary estimate of the Gross Domestic Product for the July-September period on Thursday, with analysts expecting the data to show annualised growth at a solid 3.2%, a decent improvement from the 2.2% expansion recorded in the previous quarter. Markets brace for US growth and PCE data amid geopolitical jitters

European Central Bank is expected to hold interest rates despite high inflation pressures

The European Central Bank concludes its two-day monetary policy meeting on Thursday and will announce its decision at 13:15 GMT. The bank is widely expected to leave the interest rate on the Main Refinancing Operations and the Deposit Facility unchanged at 2.65% and 2.50%, respectively, after having raised both of them by 25 basis points in September.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid
Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.