US stocks surged to new record overnight, shrugging off FOMC minutes. But Asian markets are walking another path, as led by the free fall in Hong Kong stocks. Yen surges broadly on risk aversion, followed by Swiss Franc. Commodity currencies are generally pressured, with Aussie weighed down by dovish RBA comments too. Euro, Sterling and Dollar are mixed for the moment, awaiting ECB minutes for more guidance. Technically, USD/JPY's break of 110.41 support suggest rejection by 111.71 key medium term resistance. It's also a very early sign of larger bearish reversal. Immediate focus will be on 130.02 support in EUR/JPY to double confirm near term bearishness in Yen crosses. Similarly, AUD/JPY is now eyeing 82.11 support and break will resume the whole fall from 85.78. In Asia, Nikkei closed down -0.68%. Hong Kong HSI is down -2.40%. China Shanghai SSE is down -0.78%. Singapore Strait Times is down -0.55%. Japan 10-year JGB yield is down-0.0060 at 0.031. Overnight, DOW rose 0.30%. S&P 500 rose 0.34%. NASDAQ rose 0.01%. 10-year yield dropped to as low as 1.296, before closing down -0.049 at 1.321. |
