Asian stocks are trading higher close to four-month highs on better economic data from the USA and China. The China Caixin Services PMI came in at 58.4, beating the expectations of 49.9 in June, the May reading was at 55. Earlier this week, the Manufacturing Purchasing Manager’s Index (PMI) came in at 51.2, topping the expectations.
U.S. NFP Beat Forecasts
The U.S. Nonfarm Payrolls (NFP) came in at 4,8 million, beating the market expectations of around 3 million in June. The 4.8 million new additions were the most jobs to be created in a month since the records began in 1939. The Unemployment Rate came at 11.1%, beating the consensus of 12.3%. The Average Hourly Earnings came in at 5% below the forecasts of 5.3%.
Investors sentiment boosted by the news for a coronavirus vaccine from Pfizer and BioNTech, which provided promising results in early-stage human trials.
Yesterday, the U.S. announced more than 55,000 new coronavirus cases, the largest daily increase any country has ever reported. Texas announced yesterday that is mandatory to wear masks in all counties amid the rising number of infections.
Nikkei 225 finished 0.72% higher at 22,306. The Shanghai Composite index is 1.60% higher at 3,139. The Singapore Straits Times index is 0.84% higher at 2,658. Hang Seng is 1.19% higher at 25,416.
ASX 200 Higher On Better Retail Sales
ASX 200 is 0.42% higher at 6,057, making two-week highs. Equities boosted by better than expected retail sales. The Australia Retail Sales seasonally adjusted came I at 16.9% beating the expectations of 16.3% in May. The Australia Services PMI came in at 53.1 below the forecasts of 53.2 in June. The Composite PMI rose to 52.7 from previous 52.6. The performance of construction index rose 10.6 points to 35.5.
On the technical side, the initial resistance stands at 6,101 the daily high. Next hurdle will be met at 6,164 the high from June 11 trading session. If the ASX index breaks higher, then the next supply zone stands at 6,265 the 200-day moving average.
On the other hand, immediate support for the ASX 200 index will be met at 6,021 the daily low. In case of a break lower than 6,021, sellers might test the next support area at 5,919 the low from yesterday trading session. The 100-day moving average at 5,744 would provide the next support zone.