Asian Stock Market Analysis (May 9, 2023)

Create at 1 month ago (May 09, 2023 10:05)

Overall Asian stock markets remain flat

Most Asian equities rallied on Monday as stronger-than-expected US unemployment statistics eased concerns about an impending recession and helped regional markets rebound from the severe drops of the previous two weeks caused by fears that the US financial industry might collapse, affecting riskier assets.

The Shanghai Composite index gained 1.6% on the day, while the Shanghai Shenzhen CSI 300 index gained 1%. Sentiment toward Chinese stocks has improved slightly in recent days as a result of solid travel and tourist figures, including consumer spending over the holiday weekend. While the Hang Seng Index in Hong Kong increased 0.8 percent due to a jump in locally-traded Chinese stocks.

China's imports and exports were sluggish this year as global growth slowed, and China's inflation rate fell despite weak domestic demand. Despite the fact that the Chinese economy grew faster than predicted in the first quarter due to robust service demand, China's manufacturing sector contracted substantially in April. China's exports have previously been pushed by backlog orders from the COVID interruption last year, while imports are projected to remain flat. China's imports from South Korea declined 26.5 percent in April for the tenth consecutive month, as the Chinese government set a low GDP growth objective of roughly 5 percent for the year after falling short of the 2022 target.

Meanwhile, Taiwan's exports fell for the eighth consecutive month in April, as demand for technological items remains poor, particularly from the largest market, China. Taiwan's electronic component shipments declined 8.6% year on year in April, with semiconductor exports falling 7.1%.

The Nikkei 225 in Japan slumped 0.8%, weighed down by US labor statistics that might feed policy uncertainty from the Federal Reserve, including the danger of a US government default if the debt ceiling is raised.

In April, Japan's service sector activity reached a new high, with new orders rising at the quickest rate, owing to higher consumer spending on travel, leisure, and tourism. While company confidence in the future year remains high, employment increased for the third consecutive month and at the fastest rate in four years.

This week, markets have focused on inflation data or the US CPI, which is expected to fall slightly, as well as China's trade and inflation data, which are scheduled to be released this week, to assess the recovery status of the world's second largest economy after the Fed raised interest rates last week and signaled the direction of future interest rates.

Data for Technical Analysis (5H)

CFD JP225 Nikkei 225 Futures - Jun 23

Resistance : 29102.5, 29124.5, 29160.0

Support : 29031.5, 29009.5, 28974.0         

5H Outlook

Asian Stock Market Analysis Source:                                    

Buy/Long 1 If the support at the price range 29001.5 - 29031.5 is touched, but the support at 29031.5 cannot be broken, the TP may be set around 29110.0 and the SL around 28991.0, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 29102.5 - 29132.5, TP may be set around 29180.0 and SL around 29021.0, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 29102.5 - 29132.5 is touched, but the resistance 29102.5 cannot be broken, the TP may be set around 29026.0 and the SL around 29142.0, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 29001.5 - 29031.5, TP may be set around 28974.0 and SL around 29112.0, or up to the risk appetite.       

Pivot Points May 09, 2023 02:38AM GMT

Name S3 S2 S1 Pivot Points R1 R2 R3
Classic 28933.0 28974.0 29026.0 29067.0 29119.0 29160.0 29212.0
Fibonacci 28974.0 29009.5 29031.5 29067.0 29102.5 29124.5 29160.0
Camarilla 29052.4 29061.0 29069.5 29067.0 29086.5 29095.0 29103.6
Woodie's 28938.6 28976.8 29031.6 29069.8 29124.6 29162.8 29217.6
DeMark's - - 29046.5 29077.2 29139.5 - -

Sources: Investing 1Investing 2

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