- Asian equity markets continue the trend of declines, but China remains insulated after hitting oversold levels early this week.
- Trade war headlines could knock investor confidence further back, and markets are primed for another bought of risk-off.
Asian equities were broadly subdued for Tuesday, with major indexes all printing declines except for China, where bourses managed to eke out small gains following Monday’s sharp downturn.
Chinese indexes were shuttered last week for the ‘golden week’ holiday, and came back to the market for a sharp downside catchup yesterday, and the Shanghai CSI 300 is stabilizing today, holing at 0.20% for Tuesday, while Hong Kong’s Hang Seng index sits at 0.30% for today;
Japanese markets, which were also off for the long weekend yesterday, declined alongside broader markets, with Tokyo’s Topix index falling back by -1.70% and the Nikkei 225 declining -1.24%, while Australia’s ASX 200 saw red for almost -1% in Tuesday’s trading, and emerging markets also fell backwards, with the broad Asia-Pacific MSCI index stepping down by -0.53%.
Nikkei 225 levels to watch
The Nikkei continues to face accelerating declines from a recent decades-high of 24,450, and support continues to remain thin until far below at the 23,000 major technical level, and the index is testing into the 23,500 level.
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