Asian Stock Market: Rebounds firmly as yields cool down, oil crosses $80.00, US GDP eyed


  • Asian indices have defended the downside momentum as US yields cooled off.
  • The Chinese government is planning to purchase bonds worth 2.5 trillion yuan in the fourth quarter.
  • Oil prices have recaptured the $80.00 hurdle as EIA reported a decline in oil inventories.

Markets in the Asian domain have picked significant bids after a decline after a few trading sessions. Asian indices have bounced back sharply after the 10-year benchmark US Treasury yields plunged. After hitting a high of 4% for the first time since 2010, yields have fallen sharply to nearly 3.76%. This has underpinned the risk-on impulse and risk-sensitive assets are having a ball.

At the press time, Japan’s Nikkei225 jumped 0.92%, ChinaA50 added 0.38%, and Hang Seng surged more than 1%.

The US dollar index (DXY) witnessed a steel fall after failing to sustain above the crucial hurdle of 114.50. As investors have started acknowledging the fact that the Federal Reserve (Fed) will slow down the pace of hiking interest rates post bigger rate hikes in the first week of November and mid of December, the DXY is losing its appeal.

Moreover, investors are also punishing the DXY amid lower consensus for the US Gross Domestic Product (GDP). As per the consensus, the growth rate in the US economy has declined by 0.6% in the second quarter on an annualized basis.

Meanwhile, the Chinese Finance ministry is planning to issue government bonds worth 2.5 trillion yuan in the fourth quarter, as reported by Reuters. The decision is supposed to safeguard the markets from any further turmoil as the economy is not expected to display a decent growth rate amid zero tolerance for Covid-19 spread and the real estate crisis.  

On the oil front, oil prices have rebounded firmly after remaining in the grip of bears. The black gold has overstepped the psychological resistance of $80.00 after displaying a decline in the US oil inventories reported by the Energy Information Administration (EIA). The oil stockpiles declined by 0.215 million barrels for the past week ending September 23.

Nikkei 225

Overview
Today last price 26776.87
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 26776.87
 
Trends
Daily SMA20 27517.21
Daily SMA50 27899.09
Daily SMA100 27324.44
Daily SMA200 27314.45
 
Levels
Previous Daily High 26816.39
Previous Daily Low 26200.22
Previous Weekly High 27768.51
Previous Weekly Low 26478.1
Previous Monthly High 29245.74
Previous Monthly Low 27530.7
Daily Fibonacci 38.2% 26581.01
Daily Fibonacci 61.8% 26435.6
Daily Pivot Point S1 26379.26
Daily Pivot Point S2 25981.66
Daily Pivot Point S3 25763.09
Daily Pivot Point R1 26995.43
Daily Pivot Point R2 27214
Daily Pivot Point R3 27611.6

 

 

 

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