Asian Stocks Down, Mood Somber as no End in Sight to Ukraine Conflict

Asian Stocks

HANG SENG is trading down 0.89% at 21221.35

Asia Pacific stocks were mostly down on Monday morning, holding steady as efforts to bring an end to the conflict in Ukraine continue.

China’s Shanghai Composite was up 0.31% by 10:53 PM ET (2:53 AM GMT) and the Shenzhen Component rose 0.96%. The People’s Bank of China stuck to expectations, keeping the one-year loan prime rate at 3.70% and the five-year LPR at 4.60%.

Hong Kong’s Hang Seng Index inched down 0.05%.

South Korea’s KOSPI was down 0.27%. In Australia, the ASX 200 edged down 0.15%, with the country banning alumina exports to Russia.

The question for this week is whether they will maintain the rebound and slight dip in volatility from the previous week. China’s vow to support its markets and economy is also providing a small boost.

The conflict triggered by Russia’s invasion of Ukraine on Feb. 24 is entering its fifth week. Although Turkey said Russia and Ukraine are moving closer towards talks for a cease-fire, Russia issued an ultimatum for the surrender of the Ukrainian city of Mariupol.

It also continued to have an impact on the bond market, alongside the U.S. Federal Reserve’s recent monetary policy tightening. The Treasury yield curve is flattening, with portions inverted, a potential warning of an economic slowdown. There is no cash trading in Asia due to the Japanese holiday.

On technical fronts HANG SENG RSI stood at 53.14 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : HANG SENG – BUY: 21407.00, TARGET: 21623.00, STOP LOSS : 21067.00

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