China Market Is Under Pressure: Analysis For Hang Seng, Nikkei 225, ASX, NASDAQ

By:

Vladimir Zernov

Published: Oct 30, 2024, 08:00 GMT+00:00

Key Points:

Hang Seng retreats as traders focus on the problems of China's economy.
Nikkei 225 continues to move higher, supported by the weak Japanese yen.
ASX found itself under pressure as traders reacted to inflation data.
NASDAQ gains ground as Alphabet's earnings beat analyst expectations.

Hang Seng

Hang Seng 301024 Daily Chart

Hang Seng is losing ground as traders worry about the weakness of China’s economy. According to recent reports, China may issue $1.4 trillion in extra debt to boost economic growth, but markets question whether it would be sufficient to provide material support to the economy. Traders also focus on the upcoming U.S. elections and worry that Trump may win, which will be bearish for Chinese stocks.

The nearest support level for Hang Seng is located in the 20,000 – 20,100 range. A move below the 20,000 level will push Hang Seng towards the 50 MA at 19,207.

Nikkei 225

Nikkei 225 301024 Daily Chart

Nikkei 225 gains ground as traders buy financial stocks. The recent weakness of the Japanese yen provided additional support to Nikkei 225.

Nikkei 225 is trying to settle above the resistance at 39,400 – 39,500. In case this attempt is successful, Nikkei 225 will move towards the next resistance level, which is located in the 40,400 – 40,500 range.

ASX

ASX 301024 Daily Chart

ASX pulled back as traders reacted to inflation data. Inflation Rate declined from 3.8% in the second quarter to 2.8% in the third quarter, compared to analyst consensus of 2.9%. Monthly CPI Indicator was 2.1% in Setpember, compared to analyst forecast of 2.4%. Traders worry that the economy is slowing down, which is bearish for ASX.

In case ASX declines below the 50 MA at 8155, it will move towards the nearest support level, which is located in the 8090 – 8110 range.

NASDAQ

NASDAQ 301024 Daily Chart

NASDAQ continues to move higher amid rising demand for tech stocks. The better-than-expected report from Alphabet provided additional support to NASDAQ index.

From the technical point of view, NASDAQ is trying to settle above the nearest resistance at 20,700 – 20,800. A move above the 20,800 level will push NASDAQ towards the 21,000 level.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir Zernovauthor

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.