Asian stocks mixed as US-China trade in focus, Chinese equities in retreat

Broader Asia-session stocks are largely flat for the day, but Chinese equities are taking a beating.
Trade concerns continue to edge higher in the run-up to further tariff action between the US and China.

Joshua Gibson FXStreet

Asian equities are falling back on headlines that the US' White House administration is seeking to bump planned tariffs on China to a higher rate, sending broader markets back on concerns over trade wars.

US President Donald Trump and his treasury department are seeking to lift tariffs targeting $200 billion in Chinese goods from 10% to 25%, a move that would significantly ramp-up trade war fallout in both the US and Chinese economies.

Japan's leading Nikkei 225 index is flat for the day, sitting at -0.03% while the Tokyo Topix index is similarly steady at 0.16% for Thursday, while Australia's ASX 200 sits at -0.07% and MSCI's broad Asia-Pacific index excluding Japan is in the green by 0.23%. Chinese stock indexes are falling once again on trade headlines, with Hong Kong's Hang Seng index down -0.85% for today and Shanghai's CSI 300 in the red by a full 2%.

Shanghai Composite levels to watch

Shanghai's Composite 300 index is approaching the 2,800.00 level in free-fall as trade headlines rip the bourse off of a recent swing high into 2,920.00. Trade angst amongst Asian session traders continue to punish the major mainland China index, which fell into a 2018 low of 2,690.00 in early July. A bullish recovery has been slow to develop, and bullish traders will be hoping for the current slide lower to find a floor above the last swing low at 2,750.00.

Author

Joshua Gibson

FXStreet

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.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD pops to daily highs near 1.1430

EUR/USD starts the week on a positive note, climbing to as high as the 1.1430 zone, or daily tops, on Monday. The pair’s recovery comes in response to the broad-based US Dollar weakness, while investors continue to monitor developments from the Middle East ahead of the beginning of the ECB's annual forum.

Gold remains supported by $4,000

Gold remains under marked selling pressure, holding on just above the key $4,000 mark per troy ounce at the beginning of the week. The precious metal reverses two daily advances in a row as renewed effervescence in the Middle East revive inflation concerns and bolster Fed rate hike expectations.

Bitcoin four-year cycle: BTC risks 75% drawdown with four months of bear market still ahead

Bitcoin price continues to trend downward below the $60,000 support zone after losing over 50% of its value since the $126,199 high in October. Bitcoin’s four-year cycle, measured from cycle tops to bottoms, suggests that four months of a bear market are still ahead.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.