China Market Tests New Lows: Analysis For Hang Seng, Nikkei 225, ASX, NASDAQ

Hang Seng

Hang Seng tests new lows as traders are disappointed by China’s plan to increase the loan quota for unfinished homes to 4 trillion yuan. Traders and analysts expected that China would be more aggressive. The decision has already put pressure on iron ore markets as traders worried that China’s demand for steel would not increase.

The nearest suppport level for Hang Seng is located in the 19,700 – 19,800 range. A move below the 19,700 level will push Hang Seng towards the next support at 18,600 – 18,700.

Nikkei 225

Nikkei 225 is losing ground as traders react to the Exports report. The report indicated that Japan’s Exports declined by 1.7% year-over-year in September, compared to analyst consensus of +0.5%.

Nikkei 225 settled below the support at 39,400 – 39,500 and is moving towards the 38,900 level. If Nikkei 225 settles below 38,900, it will head towards the next support level, which is located in the 37,800 – 38,000 range.

ASX

ASX tests new highs as traders focus on the better-than-expected Unemployment Rate report. The report showed that Unemployment Rate remained unchanged at 4.1%, compared to analyst consensus of 4.2%.

The technical picture is bullish as ASX settled above the resistance at 8260 – 8285. RSI remains in in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ gains ground as traders use the recent pullback as an opportunity to increase their long positions in tech stocks. It looks that traders are ready to ignore the bad news from ASML and focus on the future of the AI technology.

From the technical point of view, NASDAQ received strong support in the 20,000 – 20,100 range and is moving towards the recent highs at 20,500. A move above this level will push NASDAQ towards the resistance at 20,700 – 20,800.

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