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  • Trade war tensions are taking a break and Chinese stocks are rallying for as much ground as they can.
  • Elsewhere across Asia, the good mood is continuing to a lesser extent, and investors are buckling down for the upcoming FOMC rate call.

Asian equities are generally on the upside for Wednesday, recovering ground after falling back for a little while on renewed trade war tension between the US and China.

Chinese markets are experiencing a much-needed continuation of a recent recovery rally, climbing back towards 8-week highs with Hong Kong’s Hang Seng index bumping up 1.65% while Shanghai’s CSI 300 index clips into a comparable 1.60%.

Elsewhere in the Asia session, stocks are more subdued, with Australia’s ASX 200 index relatively flat at 0.06% and the MSCI broad Pacific-Asia index is in the green by 0.25%.

Japan is seeing a sluggish day, with the Nikkei 225 index pushing up a sedate 0.20% while Tokyo’s leading Topix index sits at -0.43%.

Nikkei 225 levels to watch

The Nikkei 225 is bumping into the 24,000 major level, a short trip away from 2018’s ceiling at 24,120, while support remains thinning out at the major previous resistance level at 23,000, with a near-term bottom at the last swing low of 22,170.