Market Brief: Asian Markets Kick Off Third Quarter Mixed, ASX 200 Higher

Asian markets started the third quarter of the year mixed as the economic data from China, and the USA are improving offsetting the concerns about rising in new coronavirus infections. The China Caixin manufacturing PMI, which measures the factory activity in China came in at 51.2, beating the expectations for 50.5; that was the second straight month of growth for the PMI. In Japan, the Consumer Confidence Index came in at 28.4, beating the forecasts of 20.9 in June, as the Japanese economy is beginning to bottom out.
Wall Street finished higher yesterday after some late buying on the last day of the second quarter. Positive economic data also supported equities. The Conference Board’s (CB) Consumer Confidence Index jumped to 98.1 for June from 85.9 in May, beating the market expectations of 91.8. The Case-Shiller Home Price Index rose 4% in April also beating the expectations of 3.8%.
On the other hand, a rise in infections has prompted Florida, Texas and California to close the bars, while Australia has shut down some parts of Melbourne, in an attempt to contain a spike in new infections.
Nikkei ended 0.75% lower at 22,121. The Shanghai Composite index is 0.62% higher at 3,003. The Singapore Straits Times index is 0.49% higher at 2,602. Hang Seng is 0.52% higher at 24,427. The ASX 200 is 0.88% higher at 5,949.

ASX 200 Ends Second Quarter with 16% Gains

ASX 200 kicked off the new quarter on positive foot despite the news for a partial shutdown in Melbourne. The ASX 200 index rose by 16% in the second quarter and by 2.5% in June. The Australian Manufacturing Purchasing Managers Index (PMI) came in at 51.2 above the estimates of 49.8. The Building Permits came in at -16.4%, below the forecast of -10% in May. 

Looking at the daily chart, the first resistance stands at 5,953 the daily top. Next hurdle will be met at 6,000 the high from June 24th trading session. If the ASX 200 index breaks higher, then the next supply zone stands at 6,153 the high from June 11th.   

First support for the ASX index will be met at 5,892 the daily low. In case of a move lower than 5,892, bears might test the next support area at 5,763 the 100-day moving average. The next support zone stands at 5,18 the low from June 16th. 


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ASX 200 Daily Chart

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