Asian stocks eke out small gains, Shanghai Composite charting a bull continuation pattern
- Asian equities are better bid on month end.
- A falling wedge - a bullish continuation pattern - is sighted on the Shanghai Composite index.
The stock markets across Asia are flashing moderate gains on the last trading day of the month, possibly taking cues from the overnight rebound on Wall Street.
As of writing, Japan's Nikkei is reporting a 1.5 percent gain and South Korea's Kospi has added 0.30 percent. Elsewhere, stocks in Australia and New Zealand are up 0.36 percent and 0.70 percent, respectively.
Meanwhile, the Shanghai Composite is trading 0.60 percent higher on the day and could re-test the Oct. 22 high of 2,675 if the resistance at 2,582 is convincingly cleared. Moreover, acceptance above 2,675 would confirm a falling wedge breakout on the hourly chart and signal a resumption of the rally from the Oct. 19 low of 2,450.
More importantly, Chinese stocks are witnessing gains despite the lower-than-expected manufacturing growth numbers for October.
In related markets, the 10-year treasury yield is seen at 3.134 percent, up 2.5 basis points on the day. The US dollar exchange rate, as represented by the dollar index, rose to 97.05 - the highest level since 2017.
The US stock markets surged yesterday, pushing the anti-risk currencies like JPY lower across the board. The Dow Jones Industrial Average surged by 431.72 points yesterday. The S&P 500 rose 1.57 percent and the Nasdaq Composite added 1.58 percent.