Asian stocks mixed as Japan bounces back; Nikkei up 2.77%

Asian stocks were mixed Friday following Thursday’s tumble that came at the hands of some weak Chinese economic data. 

In Asian trading Friday, Japan’s Nikkei 225 rose 2.77% to rebounded from Thursday’s 5.5% loss. Japanese stocks have been Asia’s best performers this year, but rising correlations between Japanese stocks and USD/JPY is seen as a potential risk by some traders, particularly if the yen suddenly gains strength. 

Hong Kong’s Hang Seng rose 0.21% while the Shanghai Composite added 0.31% a day after the preliminary reading of China’s HSBC manufacturing purchasing managers' index fell to 49.6 in May, below the 50 level that separates contraction from growth down from a final reading of 50.4 in April. 

Australia’s S&P/ASX 200 dropped 0.8% amid weakness in banking and mining shares as Westpac Banking, Newcrest Mining and Rio Tinto all drifted lower. 

New Zealand’s NZSE 50 slipped 0.88% after Statistics New Zealand reported an April surplus of NZD157 million. April months have been in surplus since 2009, according to a statement. 

The value of imported goods rose NZD263 million (7.4%) to NZD3.8 billion in April 2013, compared with April 2012, Statistics New Zealand said. Exported goods rose 2.2% to NZD4 billion. 

After removing seasonal effects, exports decreased 8.6% in April 2013, compared with March 2013, according to the statement. 

South Korea’s Kospi inched up 0.13%. Markets in Singapore were closed today, but the Straits Times Index plunged 1.77% Thursday following the regional sell-off that was made worse by the city-state’s slack first-quarter GDP report. 

S&P 500 futures rose 0.16% a day after the benchmark U.S. index lost 0.29%.

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Forex Trading Signal for 24 May 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

Up Trend :

 (1) BUY

E/P: 1.29072

T/P: 1.29300

S/L: 1.28700

(2) BUY

E/P: 1.29242

T/P: 1.29500

S/L: 1.28800

GBP/USD

Up Trend:

(1) BUY

E/P: 1.50868

T/P: 1.51200

S/L: 1.50568

(2) BUY

E/P: 1.50969

T/P: 1.51300

S/L: 1.50569

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
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Forex - Dollar drops on Fed comments, Chinese output data

The dollar weakened against most of its peers in U.S. trading on Thursday after a high-ranking Federal Reserve official said a scaling back of stimulus programs is not imminent.

Soft Chinese manufacturing data  weakened the greenback as well by fueling talk the global economy faces headwinds and remains in need of monetary support.

Monetary stimulus measures, such as the Fed's USD85 billion bond-buying program, flood the economy with liquidity and drive down borrowing to encourage investing and job creation, weakening the greenback in the process.

In U.S. trading on Thursday, EUR/USD was up 0.59% at 1.2934.

Federal Reserve Bank of St. Louis James Bullard said earlier that the U.S. central bank wasn't "that close" to scaling back stimulus measures.

On Wednesday, Federal Reserve Chairman Ben Bernanke told Congress stimulus measure will stay in place though he added they would come up for review "in the next few meetings" if the labor market makes noted improvements.

Also on Wednesday, the Fed released the minutes of its two-day monetary policy meeting that began April 30, which revealed that some Fed authorities favored scaling back asset purchases as early as June, which strengthened the dollar until Bullard's comments rekindled talk that stimulus stays in place for now.

Soft manufacturing data out of China also convinced investors the world economy faces headwinds and will require continued monetary support.

A preliminary reading of China’s HSBC manufacturing PMI fell to 49.6 from a final reading of 50.4 in April, missing market expectations for a 50.5 reading.

The euro, meanwhile, enjoyed support on eurozone manufacturing and service-sector data.

The eurozone manufacturing purchasing managers’ index rose to 47.8 in May from a final reading of 46.7 in April, better than expectations for a reading of 47.0, though still below the 50 level that separates growth from contraction.

Germany’s manufacturing PMI rose to a two-month high 49.0 in May from 48.1 in April, beating expectations for a 48.5 reading.

The eurozone services PMI rose to 47.5 in May from 47.0 in April, above expectations for a reading of 47.2. 

Back in the U.S., the Department of Labor reported earlier that the number of individuals filing for initial jobless claims last week fell by 23,000 to 340,000, better than expectations for a decline of 18,000 to 345,000.

Jobless claims for the preceding week were revised up to 363,000 from a previously reported increase of 360,000.

A separate report showed that U.S. new home sales rose by 2.3% to 454,000 units in April, defying expectations for a decline to 425,000.

The greenback, meanwhile, was down against the pound, with GBP/USDtrading up 0.38% at 1.5107.

In the U.K., official data revealed earlier that the U.K. economy expanded by 0.3% in the first quarter and expanded 0.6% from the same period year earlier, unchanged from preliminary estimates and both figures in line with expectations, which gave the pound support.

The dollar was down against the yen, with USD/JPY down 1.19% at 101.92, and down against the Swiss franc, with USD/CHF trading down 0.96% at 0.9690.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.61% at 1.0305, AUD/USD up 0.43% at 0.9742 and NZD/USD trading up 0.89% at 0.8148

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.66% at 83.81.
 
On Friday, the U.S. is to unveil government data on durable goods orders.

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Forex - GBP/USD gains on Fed comments, U.K. growth data

The pound rose against the greenback on Thursday after a U.S. Federal Reserve official said stimulus measures will stay in place for now.

Cable saw further support after U.K. quarterly growth figures met expectations.

In U.S. trading on Thursday, GBP/USD was trading at 1.5108, up 0.38%, up from a session low of 1.5014 and off from a high of 1.5128.

The pair was likely to find support at 1.4832, the low from March 12, and resistance at 1.5281, Monday's high.

Federal Reserve Bank of St. Louis James Bullard said earlier that the U.S. central bank wasn't "that close" to scaling back stimulus measures.

Stimulus tools such as the Fed's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, and talk of their staying in place can soften the greenback in a single session. 

On Wednesday, Federal Reserve Chairman Ben Bernanke told Congress stimulus measures will stay in place, adding they have helped the economy avoid deflationary decline so far though improvements to economic indicators may prompt a policy review in upcoming months.

Also on Wednesday, the Fed released the minutes of its two-day monetary policy meeting that began April 30, which revealed that some Fed authorities favored scaling back asset purchases as early as June, which strengthened the dollar until Bullard's comments rekindled talk that stimulus stays in place for now.

Elsewhere in the U.S., the Department of Labor reported earlier that the number of individuals filing for initial jobless claims last week fell by 23,000 to 340,000, better than expectations for a decline of 18,000 to 345,000.

Jobless claims for the preceding week were revised up to 363,000 from a previously reported increase of 360,000.

A separate report showed that U.S. new home sales rose by 2.3% to 454,000 units in April, defying expectations for a decline to 425,000.

In the U.K., official data revealed earlier that the U.K. economy expanded by 0.3% in the first quarter and expanded 0.6% from the same period year earlier, unchanged from preliminary estimates and both figures in line with expectations, which gave the pound support.

The pound, meanwhile, was down against the euro and down against the yen, with EUR/GBP trading up 0.23% at 0.8564 and GBP/JPY down 0.85% at 153.93.

On Friday, the U.K. is to release industry data on mortgage approvals, while the U.S. is to unveil government data on durable goods orders.

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Forex - EUR/USD pushes higher, gains capped

The euro pushed higher against the dollar on Thursday but gains were capped after the Federal Reserve indicated that it may taper its bond buying program, bolstering safe haven demand.

EUR/USD hit 1.2905 during European afternoon trade, the session high; the pair subsequently consolidated at 1.2884, gaining 0.21%.

The pair was likely to find support at 1.2820, the session low and resistance at 1.2932, Tuesday’s high.

The euro found support after data showed that manufacturing and service sectors activity in the euro zone improved more-than-expected in May.

The euro zone manufacturing purchasing managers’ index rose to 47.8 from a final reading of 46.7 in April, better than expectations for a reading of 47.0, but still well below the 50 level that separates growth from contraction.

The euro zone services PMI rose to 47.5 from 47.0 in April, above expectations for a reading of 47.2. 

Germany’s manufacturing PMI rose to a two month high 49.0 from 48.1 in April.

Earlier Thursday, data showed that China’s manufacturing sector contracted for the first time in seven months in May. The preliminary reading of China’s HSBC manufacturing PMI fell to 49.6 in May, from a final reading of 50.4 in April.

Safe haven demand for the dollar continued to be underpinned after Fed Chairman Ben Bernanke said Wednesday the bank could begin tapering its bond-buying program in the "next few meetings”.

In testimony to the U.S. Joint Economic Committee on Wednesday, Bernanke said a decision to scale back the Fed’s asset purchase program could be taken in the "next few meetings" depending on economic data.

The euro was sharply lower against the yen, with EUR/JPY tumbling 1.22% to 130.98.

The U.S. was to publish data on initial jobless claims and new home sales later in the global day.

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U.S. futures sharply lower amid Fed fears; Dow Jones down 0.68%

U.S. stock futures pointed to a sharply lower open on Thursday, one day after Federal Reserve Chairman Ben Bernanke said the bank could begin tapering its bond-buying program. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.68% decline, S&P 500 futures signaled a 0.82% slump, while the Nasdaq 100 futures indicated a 0.84% drop.

In testimony to the U.S. Joint Economic Committee on Wednesday, Bernanke said a decision to scale back the Fed’s asset purchase program could be taken in the "next few meetings" depending on economic data.

Stocks strengthened earlier Wednesday after Bernanke said in prepared remarks that a premature tightening of monetary policy carried substantial risks to the economic recovery.

Meanwhile, Wednesday’s minutes from the U.S. central bank’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June.

Financial stocks were expected to be active, after a broad decline in European lenders. In pre-market trade, JP Morgan tumbled 1.83%, while Bank of America shares plunged 2.78%. 

Tech stocks were also likely to be in focus, as Hewlett-Packard said earnings excluding some items will be in the range of 84 cents to 87 cents a share in the three months through July, above analysts' estimates. 

The news sent the maker of personal computers's shares soaring 11.63% in early trading. 

Among retailers, PetSmart rallied 2.37% in extended trading, after the retailer said late Wednesday that it predicted higher full-year earnings than initially forecast in March. 

Elsewhere, Bristol-Myers Squibb added 0.32% pre-market after a Citigroup note highlighted excitement surrounding so-called immunotherapy, in the wake of positive results from clinical trials conducted by companies such as Bristol-Myers and Roche Holding. 

Other stocks in focus included Gap, Salesforce.com, Williams-Sonoma, Zumiez, Pandora and Aeropostale, all scheduled to report first-quarter earnings later in the day. 

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plummeted 2.31%, France’s CAC 40 retreated 2.30%, Germany's DAX plunged 2.64%, while Britain's FTSE 100 tumbled 1.61%. 

During the Asian trading session, Hong Kong's Hang Seng Index plummeted 2.54%, while Japan’s Nikkei 225 Index dove 7.32%. 

Also Thursday, the preliminary reading of China’s HSBC manufacturing purchasing managers' index fell to 49.6 in May, below the 50 level that separates contraction from growth down from a final reading of 50.4 in April. 

Later in the day, the U.S. was to release the weekly government report on initial jobless claims and official data on new home sales.

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European stocks remain lower on China, Fed worries; Dax down 2.30%

European stocks remained sharply lower on Thursday, after positive euro zone data, as a weak Chinese manufacturing report and expectations for a near-term end to the Federal Reserve's bond buying program weighed. 

During European morning trade, the EURO STOXX 50 plunged 2.06%, France’s CAC 40 tumbled 2.08%, while Germany’s DAX 30 plummeted 2.30%. 

Data showed that the euro zone manufacturing purchasing managers' index rose to 47.8 from a final reading of 46.7 in April, better than expectations for a reading of 47.0, still below the 50 level that separates growth from contraction.

The euro zone services PMI rose to 47.5 from 47.0 in April, above expectations for 47.2. 

Sentiment was hit earlier after the preliminary reading of China’s HSBC manufacturing PMI fell to 49.6 in May, below the 50 level that separates contraction from growth down from a final reading of 50.4 in April. 

Stocks were also under pressure after Fed Chairman Ben Bernanke said on Wednesday that a decision to scale back the central bank's asset purchase program could be taken in the "next few meetings" depending on economic data. 

Financial stocks extended earlier losses, as French lenders BNP Paribas and Societe Generale plummeted 2.91% and 4.11%, while Germany's Deutsche Bank plunged 4.52%. 

Peripheral lenders also pushed lower, with Spanish banks BBVA and Banco Santander declining 1.94% and 2.19% respectively, while Italy's Unicredit and Intesa Sanpaolo slumped 3.23% and 3.49%. 

In London, FTSE 100 retreated 1.73%, as U.K. lenders tracked their European counterparts sharply lower, while official data confirmed that the U.K. economy expanded by 0.3% in the first quarter. 

Shares in Lloyds Banking tumbled 2.76% and HSBC Holdings plunged 3.12%, while the Royal Bank of Scotland and Barclays dove 3.96% and 4.11% respectively. 

Bloomberg reported earlier that Lloyds Banking plans to auction about USD8.7 billion of U.S. mortgage securities without government backing that were issued before the credit crisis. 

Mining stocks also remained on the downside, as BHP Billiton and Rio Tinto plummeted 2.84% and 3.50%, while Anglo American sank 4.35%. 

In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a 0.94% drop, S&P 500 futures signaled a 1.15% decline, while the Nasdaq 100 futures indicated a 1.09% slump. 

Also Thursday, Germany’s manufacturing PMI rose to a two month high 49.0 from 48.1 in April. 

Later in the day, the U.S. was to release the weekly government report on initial jobless claims and official data on new home sales.

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USD/JPY Crashes with Japanese Stock Market

After breaking to new multi-year highs on the testimony of Ben Bernanke, USD/JPY is crashing all the way towards 102 as the Nikkei makes a violent correction, falling around 6% at the time of writing. The strong correlation between yen weakness and Japanese stocks continues, and now it turns against USD/JPY. Update: the Nikkei closes 7.32% lower – the biggest crash in two years.

USD/JPY fell as low as 102.04, from the highs of 103.56 seen earlier and from the peak of 103.72 seen after Bernanke.

Also the Japanese bond market is not exactly calm. The BOJ already announced a plan to intervene in order to “calm the bond markets” and combat the leap in bond yields (JGBs).

For more, here is the USDJPY forecast, and a live chart of the wild action in USD/JPY:

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Asia stocks down on China PMI; Nikkei plunges 7% as JGBs spike

Asian stock markets tumbled sharply on Thursday, with markets in China and Hong Kong coming under pressure after data showed that manufacturing activity in China contracted for the first time in seven months in May.

Shares in Japan plunged by the most since March 15, 2010, the day of the devastating earthquake and tsunami that hit the country, Japanese government bond yields spiked.

Market sentiment was also dampened after Federal Reserve Chairman Ben Bernanke said Wednesday the central bank could begin tapering its bond-buying program in the "next few meetings.

During late Asian trade, Hong Kong's Hang Seng Index was down 2.3%, Australia’s ASX/200 Index ended 2% lower, while Japan’s Nikkei 225 Index plummeted 7.3%.

Midway through the session, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April.

The data added to lingering concerns over a slowdown in the region’s largest economy.

In Hong Kong, the Hang Seng fell sharply, with commodity producers among the biggest losers on the index amid concerns over a slowdown in global demand.

Copper producer Jiangxi Copper Company fell 3.4%, Aluminum Corporation of China, or CHALCO, tumbled 4.4%, while oil producers PetroChina and Sinopec declined 3% and 3.5% respectively.

Financial sector stocks also contributed to losses, with Industrial and Commercial Bank of China shares down 2.4% and China Construction Bank shares losing 2.2%.

Index heavyweight HSBC Holdings saw shares slump 3%. Shares of HSBC command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
 
Meanwhile, in Tokyo, the Nikkei’s plunge coincided with a surge in ten-year Japanese government bond yields, which spiked to the highest level since August.

The unexpected spike prompted the Bank of Japan to offer JPY2 trillion in liquidity to calm investor’s jitters.

Japanese megabanks plunged on the news, with shares in the nation’s largest lender Mitsubishi UFJ Financial Group tumbling 9.3%, while Sumitomo Mitsui Financial Group and Mizuno Financial Group retreated 7.8% and 6.3% respectively.

Brokerage firms Nomura Holdings and Daiwa Securities nosedived 8.2% and 11.7% apiece. 

Exporters were also on the back foot as the yen strengthened against the U.S. dollar, dampening the outlook for export earnings.

Automakers Mazda and Honda dropped 7.5% and 5.2% respectively, while Sony and Sharp fell 5.7% and 13.5% apiece.

Elsewhere, in Australia, the benchmark ASX/200 Index dropped sharply following the release of the downbeat Chinese manufacturing data.

Mining giants Rio Tinto and BHP Billiton declined 2% and 1% respectively, while Fortescue Metals Group slumped 2.8%. 

Australian commodity producers are heavily reliant on Chinese demand for raw materials.

The big four banks all fell, with Australia's biggest lender, the Commonwealth Bank of Australia down 3%, while ANZ Banking Group and Westpac Banking Group lost 5.3% and 4.5% respectively.

Looking ahead, European stock market futures pointed to heavy losses at the open.

The EURO STOXX 50 futures pointed to a loss of 1% at the open, France’s CAC 40 futures fell 1%, London’s FTSE 100 futures declined 1%, while Germany's DAX futures pointed to drop of 1.2% at the open.  

The euro zone was to release data on manufacturing and service sector activity later in the day.

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Forex - AUD/USD drops to 11-month lows on weak Chinese data

The Australian dollar dropped to 11-month lows against its U.S. counterpart on Thursday, after weak manufacturing data from China sparked fresh concerns over the outlook for global economic growth. 

AUD/USD hit 0.9614 during late Asian trade, the pair's lowest since June 1, 2012; the pair subsequently consolidated at 0.9607, retreating 0.95%.

The pair was likely to find support at 0.9583, the low of June 1, 2012 and resistance at 0.9703, the session high. 

The Aussie weakened after the preliminary reading of China’s HSBC manufacturing purchasing managers' index fell to 49.6 in May, below the 50 level that separates contraction from growth down from a final reading of 50.4 in April. 

China is Australia's biggest export partner. 

In Australia, the Melbourne Institute said its inflation expectations rose to 2.3% in April, from 2.2% the previous month. 

Meanwhile, the greenback remained supported after Federal Reserve Chairman Ben Bernanke said on Wednesday that a decision to scale back the central bank's asset purchase program could be taken in the "next few meetings" depending on economic data. 

The Aussie was also lower against the euro with EUR/AUD climbing 0.74%, to hit 1.3353. 

Later in the day, the U.S. was to release the weekly government report on initial jobless claims and official data on new home sales. 

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Forex Trading Signal for 23 May 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

EUR/USD

Down Trend :

 (1) SELL

E/P: 1.28920

T/P: 1.28500

S/L: 1.29300

(2) BUY

E/P: 1.28335

T/P: 1.28000

S/L: 1.28700

GBP/USD

Down Trend:

(1) SELL

E/P: 1.50763

T/P: 1.50300

S/L: 1.51100

(2) SELL

E/P: 1.50265

T/P: 1.50000

S/L: 1.50560

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
Daily forex signals are sent ontime to only our subcribers.

To subcribe: click here

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