Hong Kong: Hang Seng Index (.HSI) lifted by property related stocks

Hong Kong: Hang Seng Index (.HSI) lifted by property related stocks

Hong Kong: Hang Seng Index (.HSI) lifted by property related stocks

Shares in Asia were mixed Thursday afternoon as the main yield curve in U.S. Treasurys inverted, triggering fears over the state of the U.S. economy.

In mainland China, stocks rose on the day following an earlier slip. The Shanghai composite gained 0.25% to 2,815.80, while the Shenzhen component added 0.48% to 9,009.68 and the Shenzhen composite advanced 0.535% to 1,517.07. Hong Kong’s Hang Seng index also rose 0.72%, as of its final hour of trading.

Elsewhere, however, stocks largely saw losses.

In Japan, the Nikkei 225 fell 1.21% to close at 20,405.65, while the Topix index dropped 1.04% to end its trading day at 1,483.85. Australia’s S&P/ASX 200 tumbled 2.85% to close at 6,408.10, as data on Thursday showed the jobless rate unchanged despite employment numbers in the country soaring past expectations in July.

The MSCI Asia ex-Japan index shed 0.53% overall.

Markets in South Korea and India were closed on Thursday for holidays.

Bank shares decline

Bank stocks across the region mostly fell on Thursday, after financials stateside saw a rout overnight amid the market turmoil on Wall Street.

In Japan, shares of Mitsubishi UFJ Financial Group slipped 1.09% and Nomura fell 0.6%. Hong Kong-listed shares of HSBC declined 0.91%, while China Construction Bank advanced 1.77%, as of their final hour of trading.

Over in Australia, the financial subindex declined 2.96% as the so-called Big Four banks saw their stock decline: Australia and New Zealand Banking Groupfell 2.96%, Commonwealth Bank of Australia shed 2.99%, Westpac slipped 3.19% and National Australia Bank dropped 3.07%.

Yuan watch

The People’s Bank of China set its official midpoint reference for the yuan at 7.0268 per dollar on Thursday, weaker than analysts’ expectations.

It was the sixth consecutive session where the People’s Bank of China (PBOC) fixed the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar mark.

The onshore Chinese yuan last traded at 7.0249 against the greenback, while its offshore counterpart changed hands at 7.0388 per dollar.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 27,002.42.

The projected upper bound is: 26,330.15.

The projected lower bound is: 24,610.13.

The projected closing price is: 25,470.14.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 19.8531. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 24.04. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 48 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -88. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 18 period(s) ago.

Rex Takasugi – TD Profile

HANG SENG INDEX closed up 193.182 at 25,495.461. Volume was 20% above average (neutral) and Bollinger Bands were 127% wider than normal.

Open     High      Low     Close     Volume___
24,945.74025,552.13124,899.93025,495.4612,145,864,576
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 25,900.70 27,715.93 27,595.58
Volatility: 23 20 21
Volume: 1,948,551,296 1,581,502,208 1,793,630,592

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

HANG SENG INDEX is currently 7.6% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .HSI (mildly bearish). Our trend forecasting oscillators are currently bearish on .HSI and have had this outlook for the last 13 periods. Our momentum oscillator is currently indicating that .HSI is currently in an oversold condition.

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