- April 29, 2019
- Posted by: Trading
- Category: Alerts
Asian Stocks Talking Points:
- Regional mainboards were mostly weaker
- Wall Street’s slide set the tone but there was some local disappointment too
- Focus now is on official US growth figures
Find out what retail foreign exchange investors make of your favorite currency’s chances right now at the DailyFX Sentiment Page
Asia Pacific stocks were always likely to face a tricky Friday after Wall Street’s swoon in the previous session on disappointing earnings and so it proved.
Most regional mainboards were lower as their week’s close loomed with the Nikkei 225 weighed down by falls for Softbank and, perhaps more pressingly Nintendo which came out with guidance described as extremely conservative. The Tokyo benchmark slipped 0.7% with the Shanghai Composite down by 0.8%. The ASX 200 fell 0.1% with the Hang Seng the only notable gainer and even that only up by 0.1%.
Friday’s economic data was generally weak, with Japan’s industrial production fell 4.6% in March, the biggest fall since 2015. Clouded global trading conditions continue to bite into the world’s third-largest economy.
The US Dollar was steady close to two-year peaks against a basket of its major traded rivals. Thursday’s data showed strong gains for US-made capital goods, on the heels of stronger retail sales and export numbers.
If that range base does give way then likely immediate support may come in at April 11’s low of 110.90.
First quarter Gross Domestic Product numbers out of the US will come later Friday. They are expected to show that the world’s largest economy continues to outperform most developed rivals with a 2.2% annualized gain expected.
Gold prices edged back up as general risk appetite fell away and growth worries began to take control again. Crude oil prices fell back too, reportedly on suspicions that traditional producers including OPEC will increase production.
Still to come Friday is of course that US growth data but it’s not quite alone on the schedule even though it’s clearly the top act. UK home-loans data and the University of Michigan’s consumer sentiment index will play supporting roles.
Resources for Traders
Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.
— Written by David Cottle, DailyFX Research
Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!