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22 Apr 2014
Asia EM Express: Stocks climb as US companies report healthy profits
FXStreet (Łódź) - Asia EM stocks were mostly higher on Tuesday following positive US earnings reports, but traders remained cautious ahead of the release of China's preliminary HSBC Manufacturing PMI data on Tuesday and in the light of a possible broadening of West's sanctions against Russia.
South Korea's Kospi edged 0.1% higher to 2,000.60, Hong Kong's Hang Seng climbed 0.07% to 22,777.28, the Shanghai Composite index added 0.34% to 2,072.83, the Taiwan TSEC 50 Index grew 0.26% to 8,974.71 and the Mumbai Sensex incresed 0.11% to 22,790.30.
Economic data
On Monday Taiwan's Directorate-General of Budget, Accounting and Statistics released the Unemployment Rate, which fell to 4.03% in March from 4.05% in February. This is equivalent to 463,000 unemployed citizens.
Technicals
The Chinese yuan weakened against the greenback on Tuesday, following the PBoC's decision to set the official midpoint lower for the third consecutive day, at 6.1610, down 0.03% from Monday. USD/CNY rose by 0.15% to 6.2349.
The daily FXStreet Trend Index was slightly bullish, with the OB/OS Index overbought. RSI was at 68 at the last close, and has slid to 66 so far today. Daily 2-StDev Volatility Bandwidth was shrinking at 78 pips, with ATR (14) shrinking at 108 pips. The 1D 200 SMA was at 6.1128, while the 1D 20 EMA was at 6.1128.
Irene Cheung, Asia FX Strategist projects: “Going forward, we continue to see near-term upside risk in USD/CNY and USD/CNH. We expect the prevailing easing in monetary policy to continue until China’s economic data improves. We do not think it is time yet to turn constructive on the RMB.”
South Korea's Kospi edged 0.1% higher to 2,000.60, Hong Kong's Hang Seng climbed 0.07% to 22,777.28, the Shanghai Composite index added 0.34% to 2,072.83, the Taiwan TSEC 50 Index grew 0.26% to 8,974.71 and the Mumbai Sensex incresed 0.11% to 22,790.30.
Economic data
On Monday Taiwan's Directorate-General of Budget, Accounting and Statistics released the Unemployment Rate, which fell to 4.03% in March from 4.05% in February. This is equivalent to 463,000 unemployed citizens.
Technicals
The Chinese yuan weakened against the greenback on Tuesday, following the PBoC's decision to set the official midpoint lower for the third consecutive day, at 6.1610, down 0.03% from Monday. USD/CNY rose by 0.15% to 6.2349.
The daily FXStreet Trend Index was slightly bullish, with the OB/OS Index overbought. RSI was at 68 at the last close, and has slid to 66 so far today. Daily 2-StDev Volatility Bandwidth was shrinking at 78 pips, with ATR (14) shrinking at 108 pips. The 1D 200 SMA was at 6.1128, while the 1D 20 EMA was at 6.1128.
Irene Cheung, Asia FX Strategist projects: “Going forward, we continue to see near-term upside risk in USD/CNY and USD/CNH. We expect the prevailing easing in monetary policy to continue until China’s economic data improves. We do not think it is time yet to turn constructive on the RMB.”