Asian trading sessions were not that easy before as they are now, where investors seem to be following the moves made by the U.S. stock market on regular basis. We saw that earlier this week the S&P500 and Dow Jones index slumped instantly after which 3-months high record fall was also recorded in the Asian stock markets.
Back on Top
Now that the Wall Street is back on track and is being controlled by the bulls again, the Asian stocks also swung in a zigzag direction where indices gained amidst poor performance by the financial stocks. The S&P 500 index is currently trading near its all time high level at the 1242 area, where poor job numbers have raised some hopes of an ongoing injection of money in the economy.
China South City Holdings’ shares gained as much as 58% in Hong Kong’s market because the Tencent Holdings Limited stated that it would be buying a stake in the logistics-center operator. Keep in mind that Tencent holdings is one of the most renowned and financially well-off companies that has invested heavily in successful business and have minted money out of them, so it is of course a positive sign for the South City Holdings as investors would be having more confidence in investing with them.
The Japanese yen also got weaker against the major currencies whereas, gold seems quite a non-attractive kind of commodity these days for the investors where it has lost its charm, as it lost so much value last year. Currently, the metal is playing in a range where it would be good to buy above the 1250 level and good to sell below the 1198 support area. The U.S. job numbers couldn’t make that much impact on it because the investors are still considering the U.S. dollar as a safe haven, as quantitative easing is going to be reduced by this month.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org