ASIAN STOCKS TALKING POINTS:
- Asian stocks were mixed with Turkey worries still weighing on some
- The US Dollar was supported by haven bids, while oil prices slipped
- The Hong Kong authorities intervened to counter greenback strength
The DailyFX Third-Quarter Fundamental and Technical Forecasts are out now,
Asian stocks were mixed in Wednesday’s afternoon trade. Investors kept half an eye on troubled Turkey but the country’s currency, the Lira, seemed to have stabilized a bit after recent sharp falls.
The country’s problems remain, though, as markets look askance at the increasingly autocratic rule of President Recep Tayyip Erdogan. The Nikkei 225 was down 1.1%, with stocks in Shanghai and Hong Kong also lower. Australia’s ASX 200 and South Korea’s Kospi managed gains on local stock stories, but rises were quite modest.
Turkey’s woes were still evident in the foreign exchange market where the US Dollar remains close to 13-month highs against a basket of its major traded rivals. This broad strength reportedly saw the Hong Kong Monetary Authority intervene to prop up its currency against the greenback on Wednesday, for the first time since May.
The US Dollar’s strength also weighed don gold prices. Crude oil prices were lower too and DailyFX’ Semior Currency Strategist Ilya Spivak thinks they could fall further on upcoming inventory data. West Texas Intermediate prices have tracked consistently lower from the peaks of early July as concerns have grown about the overall strength of the global economy.
However, the bears have so far been thwarted quite well above the last significant low, which was June 17’s $63.38/barrel.
Still to come on Wednesday are UK Consumer Price Index data, and US mortgage application numbers. However, the day’s main event will be the release of official advanced US retail sales figures for July.
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--- Written by David Cottle, DailyFX Research
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