A rough day for Japanese stocks but it could have been worse
The Nikkei slips to start the new week after a dismal Japanese Q4 GDP report earlier but the drop in equities have been limited by China’s continued pledge for stimulus to bolster its economy and its stock market.
Chinese equities are faring much better today as we see the Shanghai Composite sit 1.9% higher currently, with the Hang Seng index also trading up by 0.7% at the moment.
As such, the market is still keeping more steady with USD/JPY resting around 109.85 – still hugging its key hourly moving averages just under 110.00.
Just be reminded that US markets are closed today so perhaps we could be in for a more calm but sluggish session ahead. But for now, risk tones are keeping more steady with a slight tilt towards the positive side basing off Chinese stocks’ performance.