Latest Asian Stock Market Overview

This week, Asian stock markets are expected to be stable. It is likely to be influenced by China's economic targets and the direction of US monetary policy, as well as economic statistics from other Asian countries.

Last weekend, at the annual meeting of the National People's Congress (NPC), China set a target for this year's economic growth of around 5%, slightly disappointing the market, which expected the number to be equal to the previous year's target of 5.5%. Among the goals are to issue measures to decrease risks in the real estate industry, boost the push for China to become technologically self-sufficient, and encourage the central bank to actively support economic development.

Last year, China's GDP increased by only 3%, the lowest rate in decades, due to the impact of COVID-19 limitations, the crisis in the huge real estate industry, policies of exclusion and restrictions in private organizations, and lower export demand.

China's A-share blue-chip CSI 300 index was last down 0.9% after rising 1.7% the previous week, while the MSCI index was up 0.2% and Japan's Nikkei rose 1.2% to a three-month high. The South Korean market index increased 0.5 percent in February, aided by consumer prices rising at the slowest rate in ten months after the central bank paused monetary tightening and kept interest rates constant last month.

This week, markets will be watching Australian monetary policy on Wednesday, as well as news updates from China's NPC annual conference over the weekend, which may cause market volatility during this period.

In the meantime, Japan will release Q4 GDP data on Thursday in addition to the policy direction of the BOJ under the new governor, which will be announced on Friday. Growth is forecast to be 0.8%, and the data is likely to show a slight decline in household spending as well as higher inflation, which may indicate the impact of rising food and energy prices on private consumption.

While the market awaits an update on the outlook for US interest rates at the Congress meeting on Tuesday and Wednesday, which is projected to raise rates by at least 25 basis points and possibly by up to 50 basis points, Asian markets rose on Monday morning. Furthermore, the February nonfarm payrolls report, which is due Friday, is expected to rise slightly to 200,000 after surging to 517,000 in January, adding to the growing concern that inflation in the United States is still on the rise.

Data for Technical Analysis (5H) 

Resistance : 28036.2, 28066.3, 28115.0

Support : 27938.8, 27908.7, 27860.0

5H Outlook

1H Outlook   

Source: Investing.com

Buy/Long 1 If the support at the price range 27928.8 - 27938.8 is touched, but the support at 27938.8 cannot be broken, the TP may be set around 28070.0 and the SL around 27923.0, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 28036.2 - 28046.2, TP may be set around 28080.0 and SL around 27938.0, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 28036.2 - 28046.2 is touched, but the resistance 28036.2 cannot be broken, the TP may be set around 27939.0 and the SL around 28051.0, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 27928.8 - 27938.8, TP may be set around 27880.0 and SL around 28040.0, or up to the risk appetite.       

Pivot Points Mar 06, 2023 06:12AM GMT

Sources: Investing 1, Investing 2