- Equities go mixed as Japan recovers from Turkey angst and China takes a step back on sluggish growth readings.
- With the US-CHina trade war due to heat up again soon, bulls don’t have much time to recover recently lost ground.
Pacific-Asia equities are mixed for Tuesday with Japanese indexes marking in gains for the day while China’s major bourses remain tepid amidst trade war turmoil.
Last week’s slide on contagion fears from Turkey and the plummeting Lira wore off over the weekend, leaving market participants free to weigh their options this week, though emerging markets are continuing to take a hammering. China saw growth figures all decline across the board early Tuesday, re-sparking concerns that a prolonged trade war with the US may continue to hamper China’s growth prospects, though traders are waiting to see what kind of trigger Shanghai pulls on government stimulus to try and keep growth in the green.
Japan’s Nikkei 225 index is up 1.85% for today with Tokyo’s Topix index also seeing gains of 1.30%, while Australia’s ASX 200 sees moderate bullish sentiment with 0.70% for Tuesday; Hong Kong’s Hang Seng index is falling back -0.90% with Shanghai’s CSI 300 also in the red for -0.75%, but emerging markets are taking a larger step back with the MSCI broad Asia-Pacific index excluding Japan down -1.95% for Tuesday.
Nikkei 225 levels to watch
Japan’s leading equity index is knocking into 22,245.00 after hitting a low of 21,851.00 this week on contagion fears, and bulls have their work cut out for them with the last swing high seen at last week’s peak of 22,800.00 before May’s top at 23,050.00, while further support sits at July’s technical bottom of 21,460.00.
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