China Market Dives: Analysis For Hang Seng, Nikkei 225, ASX, NASDAQ

Hang Seng

Hang Seng is under strong pressure as traders react to the recent Caixin report, which indicated that China may rase up to $846 billion from ultra-long government bonds to boost its economy. Traders are worried that the proposed stimulus would not be sufficient to provide material support to the troubled economy.

Hang Seng has settled below the previous support at 21,400 – 21,500 and continues to move lower. If Hang Seng settles below the 20,200 level, it will head towards the next support, which is located in the 19,700 – 19,800 range.

Nikkei 225

Nikkei 225 tests new highs as traders focus on the strong performance of U.S. indices. From a big picture point of view, the market sentiment is bullish, and the recent weakening of the Japanese yen has provided material support to Nikkei 225.

The nearest resistance for Nikkei 225 is located in the 40,400 – 40,500 range. In case Nikkei 225 manages to settle above this level, it will head towards the next resistance level at 41,400 – 41,500.

ASX

ASX tests new highs as rally continues. The general strength of precious metals markets and the rally in the U.S. stock markets served as key positive catalysts for ASX in recent weeks.

From the technical point of view, ASX climbed above the resistance at 8260 – 8285 and moved into unchartered territory.

NASDAQ

NASDAQ is mostly flat as traders wait for the release of NY Empire State Manufacturing Index report, which is expected to show that NY Empire State Manufacturing Index decreased from 11.5 in September to 2.3 in October.

If NASDAQ manages to settle above the 20,500 level, it will move towards the resistance at 20,700 – 20,800. RSI is in the moderate territory, so there is enough room to gain momentum in the upcoming trading sessions.

For a look at all of today’s economic events, check out our economic calendar.