- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.