What We Are Watching — Nikkei and Asia Dollar Index
ATEC thinks there is an increasing chance that we have seen the end of the correction for the Nikkei. This is especially so if the index is able to show a touch more momentum above its recent 29,400 (ish) level. There are several nice setups on individual names within that market (some of which ATEC mentioned before) as we move into earnings season. With the Yen where it is now, there should be many beneficiaries.
Most Asian currencies stayed weakish or range-bound this year as negative factors presented themselves through the months. These included issues like slow vaccination rates (in some countries), China slowdown, China clampdown, US tapering and so on.
This is why ATEC finds it interesting that several Asian currencies spot setups which suggest they might be ready to embark on new strengthening trends. Since a bullish Asian Dollar is usually positively correlated with regional equities, we will pay attention here as well.