Main talking point out of Asia this morning were the continued strong earnings reports and the subsequent buying conviction. In Hong Kong the Hang Seng gained over 1.2% whilst the domestic Shanghai index rallied near 2% after earnings beat expectations to finish the week well bid. We saw solid gains in Financials, energy, communications and even retailers even before waiting for central bankers at Jackson Hole. The Nikkei added a little positivity to the region (+0.5%) but is obviously still wary as the currency remains clued to the 109 level, even after we saw the Jly CPI data rise +0.5%. Australia’s ASX was unable to join the party, closing small down whilst the Indian SENSEX was closed for holidays.
This post was published at Armstrong Economics on Aug 25, 2017.