US equities marched higher following a strong US jobs report on Friday, which helped to underpin worries of an imminent trade war with US counterparts.
The US$34 billion tariffs kicked off on the last trading day of the week, and Beijing took reciprocal counter measures on US soybean imports and many other agricultural products.
In Hong Kong, China technology company Xiaomi debuted on HKEX today but grey market trading indicated the shares may be ‘underwater’ despite strong interest from public trench in early book running.
In Singapore, a new round of property cooling measures smashed equity markets on Friday. Property developers got hammered immediately and banks also tumbled due to their large exposure to the property loan market. The benchmark STI opened 0.5% higher as the market seemed to have digested the news over the weekend and buyers started to seek for ‘bargain’ deals. The Straits Times Index is currently consolidating at a key support level of 3,200 points.
Positive sentiment from US market might spread over to Asian market today, with major equity futures pointing to higher opening in the early morning. Technically, Hang Seng Index has found strong support at 28,140 – a key 78.6% Fibonacci retracement level – and since rebounded. Trend indicators remain bearish, however, momentum indicators MACD and DMI have shown early signs of trend reversing. Traders need to see its 10-Day Simple Moving Average and SuperTrend (10,3) to flip upwards to confirm this.
Market calendar – Non-farm payrolls
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