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Asian Market Update – Wednesday: Asian Shares Continue to Rally, Near Decade Highs

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Asian stock market rally

Major Asian equity markets traded higher during the Asian trading session on Wednesday, with main indexes rising across the board and the MSCI Asia Pacific Index trading near decade highs.

In Japan, Nikkei 225 was up 0.22 percent to 20,807 around midday. The Japanese rally was led by tech companies Tokai Carbon and Fuji Electric, which rose 5.75 percent and 4.27 percent by midday. Kobe Steel, which has been under pressure amid a data-falsification scandal, saw its shares tumble nearly 20 percent.

In Greater China, equities were slightly up during the morning session after strong gains on Tuesday. The Shanghai Composite Index was up a slight 0.18 percent to 3,389 before midday, while the Hong Kong Hang Seng index was trading 0.09 percent higher at 28,517.

Chinese automaker Great Wall Motors’ shares in Hong Kong gained more than 13 percent on Wednesday morning, after rumors that Germany’s BMW might form a joint venture with Great Wall.

In Hong Kong, the territory’s Chief Executive Carrie Lam is giving a closely watched policy speech on Wednesday morning. Markets will pay close attention to Lam’s economic policies to boost the island’s economy and market.

In South Korea, the Kospi gained 0.61 percent to 2,448 before midday, according to Business Korea the recent gains are driven mostly by foreign buying.

Down Under, the ASX 200 also edged up 0.51 percent to 5,767 at midday on Wednesday.

The MSCI Asia Pacific Index was up 0.82 percent to 46.5900 – that, according to Bloomberg, is nearly at a decade high.

Talk of the Day: Minutes from the latest US Fed meeting are due later in the day.

Also in the news: earnings from big banks in the US including JPMorgan Chase, Citigroup and Bank of America are due this week.

Main Market Movers – Mid-day Asian Trading Session

Indexes Value at Midday Daily Change
Japan- Nikkei 225 20,807.24 0.22%
China-Shanghai Composite Index 3,389.22 0.18%
South Korea-KOSPI 2,448.69 0.61%
Hong Kong –Hang Seng 28,517.20 0.09%
Australia-ASX 200 5,767.20 0.51%

Cryptocurrencies

Prices of cryptocurrencies were mixed overnight during Asia’s Wednesday morning trading session, with ethereum seeing small gains and bitcoin and litecoin seeing losses.

At midday in Asia, bitcoin was down 0.42 percent to $4,729. Bitcoin has been trading slightly down since yesterday when it reached a high of about $4,876.

The price of ethereum was up 0.67 percent to just above the $300 mark before midday. The virtual currency’s price, after seeing a couple of days of losing, surged back above the $300 level yesterday.

Litecoin also pointed lower on Wednesday morning, having lost 0.75 percent to $50 at midday in Asia.

Currencies

The Japanese yen lost 0.01 percent the US dollar at midday Friday to 112.44 per dollar.

The Chinese yuan also lost 0.15 percent against the US dollar to 6.5816. The yuan depreciation came after China’s central bank set the midpoint exchange rate for the currency at a three-week high.

The Australian dollar gained 0.08 percent on the dollar, changing hands at 1.2842 per dollar at midday.

Commodities

WTI Oil was up 0.28 percent to $51.04 per barrel.

Brent Crude gained 0.23 percent to $56.66 per barrel.

Gold was up 0.07 percent to $1,287 an ounce.

Business News across Asia

In China, the Chinese government has set a date for the implementation of a so-called “dual credit” system that requires car companies to lower fuel consumption and meet minimum quota on sales of new energy cars. The system will be implemented in April 2018.

Take away: This will affect global carmakers including those in Germany and the US that have big presence in the Chinese market. Two things: Firstly, more joint ventures between Chinese and foreign carmakers could be expected; Secondly, shares of battery makers and other related industries and commodities will likely get a boost.

Featured image from USCNPM.org

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.3 stars on average, based on 37 rated postsFredrik Vold is an entrepreneur, financial writer, and technical analysis enthusiast. He has been working and traveling in Asia for several years, and is currently based out of Beijing, China. He closely follows stocks, forex and cryptocurrencies, and is always looking for the next great alternative investment opportunity.




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Ethereum Co-Founder Puts to Rest Speculation of Crypto Armageddon

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Blockchain pioneer Joseph Lubin, who is at the helm of blockchain startup ConsenSys, isn’t swayed by this year’s downturn in the crypto market. In fact, Lubin has been a voice of calm in the crypto space all year, emphasizing the development side of the equation while cryptocurrencies have been in the doldrums, not the least of which has been the currency of the project he co-founded, Ethereum (ETH). He told CNBC:

“Digital currencies are not on the edge of a collapse. We’ve seen lots of boom and busts in our ecosystem over the last nearly 10 years and our ecosystem has never been stronger.”

Lubins’ barometer for success in the crypto industry is the number of projects and people that have been drawn into this space, including entrepreneurs and developers. “It’s orders of magnitude bigger than it was and the foundational infrastructure is getting built out,” he noted.

That foundational infrastructure is exactly what is going to deliver the kind of scalability that networks like Bitcoin and Ethereum need to go from what an Andreessen Horowitz General Partner recently described as “dial-up” days to mainstream adoption. Meanwhile, Lubin recently pointed out that the amount of activity on the Ethereum blockchain today outpaces where it was a year ago when the market was approaching its peak.

Industry Regulation

While U.S. regulators have been dragging their feet to develop  a framework for cryptocurrencies like bitcoin, they’ve been more keen to embrace the blockchain and according to Lubin “regulators are getting a very good understanding of the value of the technology.” When pressed, Lubin said he expects “lots of self-regulatory activity” in the crypto space” but he is quick to distinguish ether more as a crypto commodity or as a crypto fuel for the Ethereum network than a cryptocurrency, though it has some features of the latter.

Incidentally, while the broader cryptocurrency market is currently trading flat, one of the best-performing cryptocurrencies of late is Basic Attention Token (BAT), which is an Ethereum-based coin that is up approximately 50% in the last week amid speculation it will be Coinbase’s next listing.

And then there’s regulated crypto exchange Bakkt, whose parent company is the Intercontinental Exchange (ICE). Bakkt announced today that it will launch its bitcoin futures contract on Dec. 12, which is slightly behind the original plan for a November launch. In a nod to foundational infrastructure, it’s been about a year since the CME and CBOE launched the industry’s first bitcoin futures products.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 69 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.




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Market Update: U.S. Stocks Dragged Lower by Financials, Energy Companies; China Rebounds

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U.S. stocks finished mostly lower on Monday, as brisk selloffs of financials and energy shares offset modest gains in the technology and communication sectors. A large relief rally in China failed to ignite a similar revival in Europe and North America as concerns over global growth dampened investors’ appetite.

U.S. Stocks Sputter

The S&P 500 Index opened in positive territory before wobbling during the morning session and eventually turning lower in in afternoon trade. The broad index settled down 0.4% at 2,755.88, with a majority of sectors finishing in the red. Energy and financials were the biggest decliners, each falling more than 1% as a sector.

Modest gains in tech pushed the Nasdaq Composite Index to higher ground. The benchmark rose 0.3% to close at 7,468.63.

Dow industrials declined 126.86 points, or 0.5%, to 25,317.48. DowDupont Inc. (DD), American Express Co (AMX) and Goldman Sachs Group Inc (GS) were among the biggest decliners.

European markets also headed for losses on Monday, with all major continental bourses finishing in the red. The Euro Stoxx 50 Pr index closed down 0.7%,

China’s Biggest Rally in Three Years

Chinese markets exploded higher on Monday, with the mainland indexes posting their biggest single-day advance in almost three years following reassuring comments from government officials last week.

The benchmark Shanghai Composite Index surged 4.1% while the CSI 300 Index closed 4.3% higher, its largest advance since November 2015. Hong Kong’s Heng Seng Index rose 2.3%.

Government officials ranging from the Vice Premier to the heads of the People’s Bank of China talked up the domestic economy last week, reassuring investors that the ongoing trade war with the United States would not have a material effect on the nation. President Trump has implemented tariffs on more than $250 billion worth of Chinese imports, making whole on a campaign promise to hold Beijing to account for its unfair trade practices. According to the International Monetary Fund, the trade spat will result in both economies growing 0.2 percentage point slower next year. This will also lead to a downshift in global growth.

Last week, China reported annual GDP growth of 6.5% during the third quarter, the slowest since 2009. On Friday, the U.S. Department of Labor is expected to release preliminary Q3 GDP figures.

Lackluster Session for Cryptocurrencies

Risk-off sentiment in global equity markets in hasn’t translated into higher demand for bitcoin and other digital assets. On Monday, cryptocurrency prices traded slightly to the downside, erasing minor gains made during the previous session. At the time of writing, the total market capitalization of all coins was just over $209 billion, according to CoinMarketCap.

The bitcoin price swung back below $6,500, though losses were generally well contained. Ethereum, XRP and bitcoin cash all traded slightly lower on a 24-hour basis.

Digital currencies are experiencing a downshift in volatility as well as in trade volumes, with investors unwilling to commit to either direction. Recent history has taught us that prolonged periods of lateral moves are usually followed by sharp declines in subsequent sessions.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 649 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Cautiously Flying

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Hi Everyone,

It’s only Monday and already it seems to be one of the most exciting weeks of the year for the financial markets. Asian stocks are flying this morning (the reason for this below) despite some clear signs that investors are still cautious.

One of these signs is the price of gold, which has spiked during the sell-off two weeks ago (purple circle) but is now showing signs that it may be ready to stretch higher (yellow rising support line).

The fact that gold is trading near its highs is not necessarily any indication in and of itself. The upcoming Diwali Festival in India is traditionally a time when gold prices tend to rise.

As we’ll see below, investors are still happy to pour money into this market but they are doing so very carefully right now.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Chinese Support
  • Mark’s Market
  • Even more stable crypto

Please note: All data, figures & graphs are valid as of October 22nd. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

As we mentioned above, Chinese stocks are flying. The China 50 index is up an astonishing 5.3% as of this writing. This is largely due to strong support from President Xi Xinping…

We’ve seen these type of stunts before from President Trump but this behaviour does seem to be new for the Chinese leader.

The timing is impeccable here too. As we’ve been watching, the Chinese stock markets have been on the ropes after retreating more than 30% since the year’s highs. However, the Xi’s gambit may have fallen short of the mark.

As we can see below, the red line being defended on the China50 is just above 10,500 points. Whereas, to break out of the current range to the upside we’d need to see levels above 12,000.

Cautious Like an Oak Tree

For legendary investor Howard Marks, the markets are not so binary. The co-founder of Oaktree Capital does see the current markets as expensive but adds that this doesn’t mean we’re about to see a crash. The economy is doing well and therefore it pays to be in the market, but defensively.

We all know that markets are cyclical. They go through bull times and bear. However, not every rise is a bubble and not every decline is a crash. In fact, most market moves are a lot more moderate.

Marks’ theories are always fascinating even if they sometimes differ from my own, especially when it comes to bitcoin. I’ve been enjoying his email alerts for a while now, but this interview on Bloomberg opened my eyes in a new way.

Crypto Markets

Crypto markets remain steady and are showing even more signs of stability. Tether seems to have regained most of its composure and is now trading within 2 cents of the $1 mark, right where it should be.

In the meantime, volumes on other stable coins have stepped up to further stabilize the market. In this graph from theblockcrypto.com we can see USDT’s dominance of the stablecoin market dropping sharply since the incident on October 15th.

As we see more stable coins join the market, the safer the market will become. According to CCN there are more than 50 active stablecoins at the moment with more coming out all the time. At the moment, it seems that the one eating into Tether’s market share is Paxos, which is both regulated and rising quickly in volumes.

Wishing you an amazing week ahead!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

Best regards,
Mati Greenspan
Senior Market Analyst

Connect with me on….

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: MatiGreenspan | Facebook:MatiGreenspan

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 133 rated postsSenior Market Analyst at Etoro.com.




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Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

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