By the way, it looks like all the trade war talk might have thrown some cold water on the otherwise ebullient move in “Gina” because it was a tough Thursday session for mainland and Hong Kong shares.
You’ll recall that headed into Thursday, H-shares were riding an incredible 19-session win streak which had driven the RSI on the Hang Seng China Enterprise Index to a cartoonish 90:
Well that streak was snapped today as the gauge fell 1.7% at the close in Hong Kong. The Hang Seng itself fell nearly 1%:
The SHCOMP fell, as did the CSI 300.
Japanese shares were off sharply as well, with the Nikkei and the Topix both dipping notably:
As a reminder on Japan, the link between USDJPY and Japanese equities has broken down over the past year, but you’ve got to think that eventually, a stronger yen will weigh on the seemingly inexorable rally. Thanks to the dollar’s ongoing woes and the perception that the BoJ is about to take the first baby steps down the road to normalization (Kuroda protestations notwithstanding), the yen is sitting at its strongest since early September, when a combination of safe-haven flows tied to North Korea and jitters about hurricanes and the debt ceiling in the U.S. conspired to drive USDJPY to 107:
But hey, who cares, right? After all: “America first”.
It is too bad Achuthan was such a moron for not admitting his 2011 mistake until 2015, because he sometimes has something to say https://www.bloomberg.com/view/articles/2018-01-25/trump-s-tax-cuts-won-t-offset-the-impending-slowdown