Japanese Stocks Rise, Yen Weakens
Japanese stocks rose to a 2 1/2 month high Monday, while other Asian markets fell after a worsening of China’s exports added further gloom to the economic outlook.
Japan’s Nikkei Stock Average rose 1.2% to 19492.04, the highest intraday level since late August in early trading on the weakening yen.
Australia’s S & P / ASX 200 fell 0.8%, while South Korea’s Kospi fell 0.6%. Over the weekend, the data showed China’s exports in October fell for the fourth consecutive month, by 6.9% year-on-year in dollar terms, after a 3.7% decline in September.
October was worse than the median 4.1% decline predicted in a poll of Wall Street Journal.
When the Chinese market opened, investors will also assess the impact of the announcement of the regulators’ Friday to continue the initial public offering, after suspending them in July in a sell-off of shares.
China’s stock regulator has disrupted a public offering in the past, as a way to adjust to market conditions. Since 1990, the market has dropped five times and increased four during the period when the regulator allowed the company to the list, according to a note in the morning by the Bank of Communications Ltd.
“From a regulatory perspective, they think the rally will continue, which is why they will continue the IPO,” said Louis Lu, a fund manager at CSop Asset Management.
The Shanghai Composite Index, which rose 6% last week to 3590.03, now in bull market territory – defined as a rise of 20% from the recent low.
Technically, the index on the trading session today, Monday (09/11) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the level of support in advance ie 19 580 and 19 645 19510. If it fails in, then the next index is expected to tend to retest the resistance level that is 19 680 and continued until the possibilities are in the area 19 730.
Japanese stocks Positive, Yen Cluck
Japanese stocks opened bolted at the beginning of the transaction this morning. Citing data from Bloomberg, the Topix rose 0.8% to 1575.57. Thus, the benchmark index of Sakura is already jumped 14% from its lowest position in the last 8 months on 29 September. While the Nikkei 225 Stock Average rose 0.7% to 19391.84.
Japanese stocks rise triggered by a weaker yen on speculation US interest rate hike next month. Speculation is making increasingly strong position of the US dollar compared to other world currencies, the yen was no exception. This morning, the yen was at 123.22 per dollar. At the end of last week, cluck yen up 1.1% after US employment data showed a significant increase. The data also hoist the possibility of higher US interest rates this year to 68%.
Technically, the trading session today, Monday (09/11), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 122.80 and 122.00 maximum. Meanwhile, if the Yen is able to break and hold above 123.34, then another alternative scenario the Yen chance to test the resistance at 123.80 and 124.30 area.
Gold Prices Rise in Early Week
Trading commodity futures exchange on Monday (9/11), the price of gold and silver was observed traded higher as demand for the greenback rose after the improvement in the US labor market conditions.
Ongoing trade in the Asian session, gold futures for December delivery rose by 0:45 monitored% to trade at $ 1.092.50 per troy ounce on the Comex division of the US. Meanwhile, silver futures for December delivery rose by 0:33 monitored% with traded at $ 14,740 per troy ounce.
The price of gold and silver look to try to rise by trading higher after posting weekly drop last week. Decline experienced by metal prices have emerged as a result of improvement in the US labor market conditions.
In a report released by the Bureau of Labor Statistics states that the US Non-farm payrolls increased by 271K in October after growing as much as 142K in September. The results also surpassed the predictions of economists, which is expected to rise as much as 182K period from September to October.
Other support also managed to push demand for the US dollar to strengthen had come from a Bureau of Labor Statistics which states that the average income of its hourly workers increased by 0.4% in October after unnatural changes to remain at 0.0% in September. The US unemployment rate which is now decreased by 0.1% to 5.0% in October also looks helped complete recovery of the US labor sector.
Thus, it can be concluded that the magnitude of potential for the Fed to raise interest rates has been more open, because at this time the central bank’s target for a US unemployment rate of 5.0% has been reached. Moreover, the central bank officials from several states themselves seem optimistic that the Fed’s interest rate hikes is their next move.
Technically, gold in today’s trading session on Monday (09/11) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1088.33 and re-test the maximum level of 1083.73. However, if the price of gold is able to break and hold above 1093.30, the predicted gold prices could potentially test Resistance ie, 1095.40 and 1100.72.
