Markets across Asia are recovering as Chinese stocks push higher

It’s been another chaotic start to trade in Asia as investors continue to grapple with uncertainty generated by last week’s UK Brexit vote.

However, there are signs investors are feeling confident enough to buy risk assets, particularly in stocks and commodities.

Despite the PBOC fixing the Chinese yuan at the weakest level seen since December 2010 on Monday, something that was initially taken as a negative by investors, risk assets across the region appear to be mirroring the movements seen in Chinese stocks.

After opening weaker, the benchmark Shanghai Composite index currently trades up 0.62%.

Other regional stock indices, along with currencies and commodities, have all risen in response.

While many will question the merits of following Chinese stock investors, for the moment, that’s what markets are taking their cues from, be it rightly or wrongly.

Here’s the regional scoreboard as at Midday in Sydney.

Stocks

  • ASX 200 5131.70 , 18.52 , 0.36%
  • Nikkei 225 15179.59 , 227.57 , 1.52%
  • Shanghai Composite 2871.84 , 17.55 , 0.62%
  • Hang Seng 20065.65 , -193.48 , -0.96%
  • KOSPI 1921.87 , -3.37 , -0.18%
  • Straits Times 2723.88 , -11.51 , -0.42%
  • S&P 500 Futures 2005.75 , -12.75 , -0.63%

Forex

  • USD/JPY 101.62 , -0.57 , -0.56%
  • USD/CNY 6.6550 , 0.0194 , 0.29%
  • AUD/USD 0.7407 , -0.0051 , -0.68%
  • NZD/USD 0.7054 , -0.0076 , -1.07%
  • AUD/JPY 75.27 , -0.84 , -1.10%
  • EUR/USD 1.0996 , -0.0119 , -1.07%
  • GBP/USD 1.3391 , -0.0287 , -2.10%
  • USD INDEX 96.338 , 0.8900 , 0.93%

Commodities

  • Gold $1,328.25 , $12.77 , 0.97%
  • Silver $17.76 , $0.07 , 0.38%
  • WTI Futures $47.23 , -$0.41 , -0.86%
  • Copper Futures ¥36,370 , ¥170 0.47%
  • Iron Ore Futures ¥405.00 , ¥17.00 , 4.38%

10-Year Bond Yields

  • Australia 2.037%
  • New Zealand 2.385%
  • Japan -0.197%
  • Germany -0.033%
  • UK 1.092%
  • US 1.489%

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