Asian Market Roundup 09/29/2009

Japan's Nikkei 225 gained 1.0% and South Korea's Kospi Composite rose 0.9%. Australia's S&P/ASX 200 was 1.7% higher and Hong Kong's Hang Seng Index was up 2.0%. 

China's Shanghai Composite Index (CN;SHI) was sluggish and directionless overnight ahead of the National Day holidays starting Thursday. The long holiday which was preventing any buyers from taking any positions, in case we see a global market sell during the hiatus. 

Japans Nikkei 225(JP;N225) recovered as the Yen helped export related stocks recover from the sharp sell off on Monday. The Yen hit 80.32 on the back of comments from the Japanese Finance Minister Hirohisa Fujii , said currency intervention might be an option if exchange rates make irregular moves, in an apparent effort to dampen the impact of his previous comments that he favored a strong yen. 

"There's a lack of fundamental news, so sentiment is getting more important in determining the market's daily direction. And the overnight rebound in the U.S. markets certainly helped improve sentiment today" in Seoul, said J.J. Park at Taurus Investment & Securities.

The Nikkei 225 is still holding the critical 10, 000 level  which is very important from a technical perspective, and it will be the currency market that will dictate whether or not we hold it.