Asian Stock Market: Caution triggers as global growth encounters a downward revision

Asian stocks are expected to remain cautionary as global growth has encountered a downward revision.
Global markets are likely to remain on tenterhooks ahead of the US GDP release.
Oil price has dropped below $80.50 as the US recession fears are still solid.

Sagar Dua FXStreet

Markets in the Asian domain are showing signs of caution amid the release of corporate earnings worldwide and ahead of the United States Gross Domestic Product (GDP) data. The US Dollar Index (DXY) is gauging a cushion around seven-month low at 101.10, however, the downside bias is extremely solid. S&P500 futures are displaying modest gains recorded in early Asia after settling Wednesday’s trading session on a flat note. The risk profile is positive, however, anxiety among investors will remain high ahead of the US GDP and other economic data.

At the press time, Japan’s Nikkei225 eased 0.20%, KOSPI gained 0.70%, Hang Seng soared 1.75%, Chinese markets are closed on account of the Lunar New Year while Indian markets are closed due to Republic Day.

A poll conducted by Reuters on global growth indicates that the global economy will grow by 2.1% in 2023; 2.8% in 2024 vs. 2.3% and 3.0%, respectively, in an October poll. Reuters stated that 'Falling energy prices, a slowdown in inflation in most economies from multi-decade highs, an unexpectedly resilient euro zone economy and China's economic reopening have led traders to speculate the downturn will be milder.''

Japanese equities are facing caution despite the Bank of Japan (BoJ) Governor Haruhiko Kuroda favored of a continuation of expansionary monetary policy. BoJ Kuroda has confirmed that the central bank “will resolutely keep the monetary environment easy.” He added that “the BoJ aims to regain market functionality by tweaking yield curve control operations while maintaining an easy monetary environment.

On the oil front, oil prices have surrendered the $80.50 support as the US recession is still in the picture despite rising bets for a smaller interest rate hike by the Federal Reserve (Fed). The Fed could not achieve price stability without entering into recession as retail demand needed to get squeezed and producers would be needed to drop output prices to maintain the harmony.

Nikkei 225

Overview
Today last price	27436.49
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	27436.49

Trends
Daily SMA20	26338.34
Daily SMA50	27070.29
Daily SMA100	27194.16
Daily SMA200	27211.99

Levels
Previous Daily High	27460.12
Previous Daily Low	27199.76
Previous Weekly High	26965.1
Previous Weekly Low	25812.13
Previous Monthly High	28325.89
Previous Monthly Low	25793.22
Daily Fibonacci 38.2%	27360.66
Daily Fibonacci 61.8%	27299.22
Daily Pivot Point S1	27270.79
Daily Pivot Point S2	27105.1
Daily Pivot Point S3	27010.43
Daily Pivot Point R1	27531.15
Daily Pivot Point R2	27625.82
Daily Pivot Point R3	27791.51

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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