At the mid-point of today’s Asian session, the majority of Asian indices have been positive. The ASX 200 has traded with gains and hit a fresh 21 month high amid comments from the RBA that the inflation outlook offers scope to ease further if necessary and there are signs significant past easing are having expected effects. The Nikkei 225 has underperformed today, falling below the 11,200 level at the open and trading in firm negative territory during the whole morning session. The Nikkei 225 closed the morning down 1.38%, weighed by a stronger JPY and further profit taking, ahead of the long weekend break. The Shanghai Comp. and Hang Seng are both trading in the green, as Chinese sentiment is positive due to the upcoming Lunar New Year celebrations and a week long holiday in China. The Hang Seng was further supported by a better than expected Chinese Trade Balance, adding to the celebratory mood in China.
In the FX markets, USD/JPY has rebounded off its lows after trending lower during the EU and US sessions. AUD/USD was slightly supported by the positive Chinese Trade Balance figure, but still trades below the 1.0300 level after trending considerably lower during the EU and US sessions, amid the large FX movements following dovish comments from ECB President Draghi.
Looking forward, Chinese CPI and PPI are scheduled for release at 0530GMT/2330CST.
As of 0237:
ASX200 (+0.50%), Nikkei 225 (-1.38%), Shanghai Comp. (+0.18%), Hang Seng (+0.12%), KOSPI (+0.56%)
08 Feb 2013 - 02:41 - - Source: RANsquawk
RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: