Hong Kong: HANG SENG INDEX (.HSI) mixed amid uncertainties about Britain’s exit from the European Union and the ongoing trade conflict between the U.S. and China
Asian shares were mixed Monday amid uncertainties about Britain’s exit from the European Union and the ongoing trade conflict between the U.S. and China.
Japan’s benchmark Nikkei 225 NIK, +0.25% gained nearly 0.3% in early trading. South Korea’s Kospi 180721, +0.20% picked up 0.2%, while Hong Kong’s Hang Seng HSI, +0.02% added 0.3%. The S&P/ASX 200 XJO, +0.04% in Australia lost 0.1, while the Shanghai Composite slipped 0.1% SHCOMP, +0.05% . Shares fell in Taiwan Y9999, +0.04% and were mixed in Southeast Asia.
Among individual stocks, Nissan 7201, -0.97% fell in Tokyo trading while Rakuten 4755, +0.85% and Mitsubishi UFJ 8306, +1.52% gained. In Hong Kong, China Life Insurance 2628, +5.01% and AIA 1299, -0.20% rose while Tencent 700, -1.87% fell. Samsung 005930, +0.80% inched up in South Korea, while Beach Energy BPT, -1.70% sank in Australia.
British Prime Minister Boris Johnson is trying to win over rebellious lawmakers in time to meet the Oct. 31 Brexit deadline for the UK’s exit from the 28-nation European Union.
A vote over the weekend ended with an amendment that delays the proposed deal, leaving the situation uncertain. And EU officials have not yet responded to Johnson’s reluctant request for an extension of the month’s end deadline.
“The can is not kicked far down the road with UK Prime Minister Boris Johnson expected to seek a new ‘meaningful vote’ on his deal as soon as Monday with the countdown to the Brexit deadline,” Jingyi Pan of IG said in a commentary.
Meanwhile, Japan reported that its exports fell 5.2% from a year earlier in September while imports slipped 1.5%. The resulting deficit of 123 billion yen ($1.1 billion) reflected weak exports to China, South Korea and other Asian countries, customs data showed.
The mixed performance to start the week is a continuation of the wobbles that ended last week, when the S&P 500 index logged its second straight weekly gain even though stock indexes ended lower on Friday.
Technology companies led the slide, which erased the major U.S. indexes’ gains from the day before. Communication services, industrials and health care stocks also fell, outweighing gains in real estate companies, banks and elsewhere in the market.
Investors are focusing on company earnings reports, searching for a clearer picture on the impact that the trade war between the U.S. and China is having on corporate profits and the broader economy.
The S&P 500 index SPX, +0.63% fell 0.4% on Friday to 2,986.20. The index is just 1.3% below its all-time high set in late July.
The Dow Jones Industrial Average DJIA, +0.21% dropped 1% to 26,770.20 and the Nasdaq COMP, +0.82% lost 0.8%, to 8,089.54.
Uncertainty over the standoff between Beijing and Washington has been roiling markets. Negotiators reached a truce last week that kept the conflict over trade and technology from escalating further, but both sides still have many issues to work out before reaching a substantive deal.
Benchmark crude oil CLX19, -0.63% dipped 10 cents to $53.68 a barrel in electronic trading on the New York Mercantile Exchange. It fell 15 cents to $53.78 a barrel Friday. Brent crude oil BRNZ19, +0.12% , the international standard, dropped 20 cents to $59.22 a barrel.
The dollar USDJPY, +0.21% rose to 108.50 Japanese yen from 108.38 yen on Friday.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 27,529.43.
The projected lower bound is: 25,946.13.
The projected closing price is: 26,737.78.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 70.2997. This is not an overbought or oversold reading. The last signal was a sell 0 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 58.20. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 43 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 91. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.
Rex Takasugi – TD Profile
HANG SENG INDEX closed up 6.100 at 26,725.680. Volume was 35% below average (neutral) and Bollinger Bands were 36% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 26,357.64 26,209.94 27,673.47
Volatility: 16 19 19
Volume: 1,617,835,264 1,685,608,960 1,782,376,704
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.
HANG SENG INDEX is currently 3.4% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .HSI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .HSI and have had this outlook for the last 2 periods.