28 May 2014
Asia EM Express: Investor confidence boosted by improving Chinese data
Almost all Asian stocks were in the green on Wednesday, as investor confidence was boosted by another positive data release in China, pointing to a stabilization of the economy, as well as by signs of the recovery advancing in the US.
China's benchmark Shanghai Composite Index added 0.7% to 2,050.23. Hong Kong's Hang Seng grew 0.6% to 23,089.81, Taiwan's Taiex climbed 0.7% to 9,121,71 and Seoul's Kospi rose 0.9% to 2,017.06.
Economic data
On an annual basis China's Industrial Profits numbers climbed 9.6% in April down from the 10.7% seen in March, the National Bureau of Statistics said on Wednesday. Month-on-month Industrial Profits increased 10%, slightly down from the previous 10.1% rise.
“The evidence of economic stability in the data of late from China indicates the government’s 7.5% real GDP growth target is achievable,” Derek Halpenny, European Head of Global Markets Research at Bank of Tokyo-Mitsubishi speculates.
Thai annual Industrial Production, published on Wednesday declined 3.9% in May, up from the 10.4% drop seen the previous month and above projections of -6.4%.
Hong Kong released Trade Balance data on Tuesday was disappointing, showing that the HKD -50.4B deficit seen in March widened to a HKD-55.3B deficit in April, against forecasts of narrowing to HKD-46.5B.
Exports fell 1.6%, compared with the 3.4% increase and against consensus of a 4.6% rise. Imports edged up 2.4%, down from the 3.2% growth and below expectations of climbing 4.5%.
Technicals
The Chinese yuan fell 0.24% to this month’s low of 6.2639 against the greenback on Wednesday, which is the steepest intra-day decline since March.
The USD/CNY daily FXStreet Trend Index was slightly bullish and the OB/OS Index was overbought. RSI stood at 62 at the last close, and has slid to 56 so far today. Daily 2-StDev Volatility Bandwidth was shrinking at 104 pips, with ATR (14) shrinking at 80 pips. The 1D 200 SMA was at 6.1271, while the 1D 20 EMA was at 6.2361.
China's benchmark Shanghai Composite Index added 0.7% to 2,050.23. Hong Kong's Hang Seng grew 0.6% to 23,089.81, Taiwan's Taiex climbed 0.7% to 9,121,71 and Seoul's Kospi rose 0.9% to 2,017.06.
Economic data
On an annual basis China's Industrial Profits numbers climbed 9.6% in April down from the 10.7% seen in March, the National Bureau of Statistics said on Wednesday. Month-on-month Industrial Profits increased 10%, slightly down from the previous 10.1% rise.
“The evidence of economic stability in the data of late from China indicates the government’s 7.5% real GDP growth target is achievable,” Derek Halpenny, European Head of Global Markets Research at Bank of Tokyo-Mitsubishi speculates.
Thai annual Industrial Production, published on Wednesday declined 3.9% in May, up from the 10.4% drop seen the previous month and above projections of -6.4%.
Hong Kong released Trade Balance data on Tuesday was disappointing, showing that the HKD -50.4B deficit seen in March widened to a HKD-55.3B deficit in April, against forecasts of narrowing to HKD-46.5B.
Exports fell 1.6%, compared with the 3.4% increase and against consensus of a 4.6% rise. Imports edged up 2.4%, down from the 3.2% growth and below expectations of climbing 4.5%.
Technicals
The Chinese yuan fell 0.24% to this month’s low of 6.2639 against the greenback on Wednesday, which is the steepest intra-day decline since March.
The USD/CNY daily FXStreet Trend Index was slightly bullish and the OB/OS Index was overbought. RSI stood at 62 at the last close, and has slid to 56 so far today. Daily 2-StDev Volatility Bandwidth was shrinking at 104 pips, with ATR (14) shrinking at 80 pips. The 1D 200 SMA was at 6.1271, while the 1D 20 EMA was at 6.2361.