Asian markets are staying in selloff mode on global slow down concerns. Additionally, Hong Kong stocks lead decline on news of arrest of Chinese tech giant Huawei’s CFO Meng Wanzhou. The arrest is reported to be in relation to Huawei violating US sanctions by shipping US originated products to Iran and some other countries. Canada also confirmed that Meng is facing extradition to the US. The arrest also prompted concerns over Chinese retaliation on US executives.
For now, Nikkei is down -1.84% or -404.35 pts. China Shanghai SSE is down -1.28%. Singapore Strait Times is down -1.25%. Hong Kong HSI is down -2.6% or -703 pts. The HSI’s gap down and steep decline today argues that recent recovery from 24540.63 has completed earlier than expected at 27260.43. With strong break of 55 day EMA, deeper fall would be in favor in near term back to retest 24540.63 low. More importantly, the corrective structure of the rebound retains medium term bearishness for new low at a later stage.
In the current currency markets, Australian leads the way down again on risk aversion and smaller than expected trade surplus data. Canadian Dollar also stays pressured after yesterday’s dovish BoC statement. Yen is the strongest one, followed by Swiss Franc and then Dollar.
