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Gold Surges Amid Asian Sea Of Red, China Strengthens Yuan By Most In 4 Months

Hong Kong's Hang Seng index is now down over 21% from the highs, having fallen over 9% in the last week, and Taiwan's TAIEX is down over 20% from April highs, joining Chinese stocks, both joining Chinese stocks in official bear markets. Japanese markets are down over 6% in the last few days (which Amari simply brushes off, blaming the global selloff stemming from China), a JGB trading volumes slump to a record low. Tensions in Korea are not helping. With all eyes on China's flash PMI (though why we are not sure since PBOC is already full liquidity-tard with CNY350bn this week alone), The PBOC fixed Yuan at 6.3864, up from yesterday's biggest strengthening in 3 months to 6.3915 (the biggest 2 day strengthening since April), and margin debt fell for the 3rd day. Gold is surging in the Asia session, near $1160.

The 3 Bears...

  • *HONG KONG'S HANG SENG INDEX FALLS 1.8% IN PREMARKET

 

China remains ugly...

  • *SHANGHAI MARGIN DEBT DECLINES FOR THIRD DAY (Good News!)
  • *CHINA'S CSI 300 STOCK-INDEX FUTURES FALL 0.6% TO 3,580.2
  • *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 1.3% TO 3,714.29
  • *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1.5% TO 3,609.96

 

As The Yuan fix is strengthened notably..biggest 2 days strengthening in over 4 months...

  • *CHINA SETS YUAN REFERENCE RATE AT 6.3864 AGAINST U.S. DOLLAR

 

The question is will China's PPT rescue them from the 200DMA...

 

Japan is rapidly getting uglier...

  • *JAPAN'S TOPIX INDEX EXTENDS LOSS TO 2.3%

 

But don't worry about Japanese stocks...

  • *AMARI: JAPAN STOCKS REFLECT GLOBAL SELLOFF STARTING IN CHINA
  • *ASO: HAVE TO CAREFULLY WATCH CHINA CURRENCY SYSTEM

But perhaps this will wake some Japanese up...

Japanese government bond trading has slumped to a record low and the Bank of Japan’s own analysis shows a market still in stress across a range of indicators.

 

Trading volume sank to 15.6 trillion yen ($126 billion) in July, based on BOJ calculations using figures from the Japan Securities Dealers Association on Thursday. That’s down 73 percent from as high as 57.4 trillion yen in April 2012, a year before BOJ Governor Haruhiko Kuroda began unprecedented debt purchases.

As we noted earlier, Korean tensions are rising...

  • *S.KOREA, U.S. FORCES UPGRADE JOINT SURVEILLANCE WATCHCON:YONHAP
  • *N. KOREA’S KIM JONG UN ORDERS ARMY INTO STATE OF WAR: XINHUA
  • *N. KOREA SEEN MOVING ARTILLERIES CLOSER TO BORDER: YONHAP NEWS

But there is some Green.... in Gold...

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Charts: Bloomberg