Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Asia Day Ahead: HSI struggles, while selling pressures for Nikkei 225 abate

The Asian session looks set for a more subdued start, with Nikkei +0.18%, ASX -0.13% and KOSPI -0.02%.

HSI Source: Getty

Asia Open

The Asian session looks set for a more subdued start, with Nikkei +0.18%, ASX -0.13% and KOSPI -0.02%. While we have a positive handover from Wall Street, some gains were pared into the later half of the session, while the VIX ended the day up 5.3%, in what should generally be an inverse relationship with the indices. That may reflect some near-term caution amid the current risk rally.

The aftermath of the Donald Trump’s assassination attempt over the weekend saw the US dollar firming by 0.2% and longer-term Treasury yields higher, likely as a reaction to the increased odds of a Trump presidency. That may potentially cap some gains in the Asian session today, while sentiments continue to digest the slew of weaker economic data presented in China yesterday. You may read more on the details here: https://www.ig.com/sg/news-and-trade-ideas/mixed-front-in-chinas-economic-data--hsi-edging-lower-240715

Chinese equities were broadly lower yesterday, with downside surprises in recent data raising more doubts on its recovery. The Hang Seng Index (HSI) was down 1.5% in yesterday’s session, but one may still argue that a near-term downward trendline support may still be on watch. Its daily relative strength index (RSI) is back at its 50 level, which may have to see some defending ahead.

Hong Kong HS50 Cash Source: IG charts

Look-ahead: US retail sales

Economic data ahead may leave the US retail sales in focus. Current expectations are pointing to a more subdued state for US consumers, with June retail sales to turn in flat month-on-month, down from previous 0.1%. That may continue to reinforce market expectations for a September rate cut from the Federal Reserve (Fed).

Overnight, Fed Chair Jerome Powell continued to lay the groundwork for upcoming policy easing, acknowledging that recent inflation progress “add somewhat to confidence” that inflation is on track to return to target.

Recent dip in Nikkei 225 index on watch for some defending

Following a 3% retracement over the past week, the Nikkei index is attempting to stabilise around the 41,160 level, which will have to see some defending from buyers. This is because on the weekly chart, a bearish shooting star candlestick is being presented last week and any close below last week’s low may potentially draw technical sellers to weigh on the index further in the near term.

At least for now, selling pressures seem to be abating, marked by the smaller red candles. Its daily RSI has also eased from previous overbought conditions into more neutral territory. On the upside, the recent high at the 42,511 level will be on watch as resistance to overcome. Should the 41,160 level be broken down, the 39,500 level may be on watch for any formation of a new higher low, where an upward trendline support may stand.

Japan 225 Source: IG charts

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.