Asia Markets Mixed Following China’s Trade Data; Nikkei Drops Amid Suspected Yen Intervention

In today’s trading, Asian stocks were mixed, with the yen fluctuating between gains and losses following the latest inflation update. This strengthened Wall Street’s expectations for potential interest rate relief by September. 

 

 

The USD/JPY currency dropped 2.1% overnight, trading as low as 157.43, sparking speculation that Japanese authorities may have intervened to enhance the impact of the dovish US inflation data. 

The Nikkei 225 index plummeted by 2.5% closing at 41,190.68 after the Bank of Japan conducted rate checks with banks on the euro-yen cross on Friday, raising concerns about possible intervention by Japanese authorities, though top currency diplomat Masato Kanda declined to confirm this. 

Japan’s industrial production growth for May 2024 was revised upward to 3.6% month-over-month, compared to the preliminary estimate of a 2.8% increase. Investors are also anticipating the Bank of Japan’s policy meeting in late July, where it is expected to announce plans for tapering bond purchases and potentially raise interest rates again. 

Mainland China stocks also struggled to sustain the previous session’s rally, which was fueled by new regulatory measures aimed at curbing aggressive stock market selling, following mixed trade data on Friday. China reported its largest trade surplus in nearly two years, with exports surging and imports weakening. 

Traders are now looking ahead to next week’s GDP release and a key political meeting in Beijing. 

Hong Kong’s Hang Seng index rose 2.6% to 18,293.38, while the Shanghai Composite index remained nearly unchanged at 2,971.29, following data indicating that China’s exports increased by 8.6% in June, surpassing market expectations. 

Meanwhile, Bangkok’s SET edged up by 0.1%. Taiwan’s Taiex dropped 2% with Taiwan Semiconductor falling 3.7%. Despite initially rising on the announcement that its revenue had climbed nearly 33% in June compared to the same period last year, the company followed Wall Street tech giants lower. 

In Australia, the S&P/ASX 200 gained 0.9% to reach 7,959.30, while South Korea’s Kospi fell 1.2% to 2,857.00.

Buckle Up, Ethereum! Exchange Outflow Hints at Bullish Breakout

Yesterday, an unknown market participant transferred 6,400 Ethereum (ETH) to the Beacon depositor wallet. 

 

 

The Beacon Chain, responsible for validating new blocks on the Ethereum network, received this significant transfer. Bulls have kept bears at bay, suggesting that ETH might inch toward $3,500. Locking a massive number of coins could reduce selling pressure and help prevent ETH from falling below $3,000.

An increase in this metric indicates that holders are staking at least 32 ETH in anticipation of rewards. However, for the price to rise, the number of coins on exchanges must decrease. To determine if this is the case, AMBCrypto assessed Ethereum’s exchange inflow and outflow.

Exchange inflow measures the amount of crypto sent to exchanges from external sources, while exchange outflow tracks the number of ETH withdrawn.

Interestingly, this surge is occurring as the launch of the spot Ethereum ETF approaches. This decline in circulation suggests that the Ethereum community is optimistic about the upcoming event. 

If exchange inflow exceeds outflow, the price is at risk of correction. Conversely, an increase in outflow supports the potential for price appreciation. 

According to Santiment, ETH’s exchange inflow was 26,500, while the outflow was 37,500. Given this difference, there is a strong likelihood that ETH’s price could surge in the days or weeks following the official trading launch of the ETFs. 

Meanwhile, Benjamin Cowen, founder of Into The Cryptoverse, shared insights on potential price movements. 

Cowen suggested that ETH may start outperforming Bitcoin (BTC) by the fourth quarter of the year. Moreover, data from the IntoTheBlock indicated that Ethereum might not wait until then to perform well, particularly due to the state of the Bulls and Bears indicator.

Asian Shares Mostly Showed Gains – Nikkei Reached 42,000, Setting A New Record High For The Third Consecutive Day This Week

In today’s trading, Asian shares mostly gained following a strong rally on Wall Street, with Japan’s Nikkei 225 index surpassing the 42,000 mark for the first time. 

 

 

Amid rising uncertainties surrounding the Chinese economy and the upcoming US presidential elections, foreign investors are turning their attention to Japanese stocks as a potentially stable investment option. 

This new interest is bolstered by the recent strong performance of Japanese shares. On Thursday, the Nikkei stock average surged to an all-time intraday high, climbing 1.4% from the previous day’s close to reach 42,426.77. The Nikkei closed at 42,224.02, setting another all-time high. This follows February’s breakthrough of a record level that had stood since 1989.

This week, many global stock markets were uplifted by comments from US Federal Reserve Chairman Jerome Powell, which raised hopes for interest rate cuts. Yesterday, Powell informed Congress that the US is progressing towards price stability. He had previously stated that the central bank could lower rates once significant progress is made towards its inflation target, as the US economy is no longer overheating. 

As expectations for prolonged high US policy rates diminish, foreign investors are increasingly turning to Japanese stocks. Speculation suggests that Middle Eastern funds, possibly around 10 billion yen ($61.8 million), flowed into 14 major Japanese stocks in early July. 

Nozomi Moriya from UBS Securities noted interest from Middle Eastern investors but couldn’t specific flows or the start of this trend. Yunosuke Ikeda of Nomura Securities, on the other hand, highlighted the long-term perspective of Middle Eastern investors and the attractiveness of the weak yen. 

Meanwhile, Hong Kong’s Hang Seng index climbed 2.1% to 17,831.40, while the Shanghai Composite index surged 1.1% to 2,970.39.

In South Korea, Kospi also went up by 0.8% closing at 2,891.35. Australia’s S&P/ASX 200 went up by 0.9% closing at 7,889.60.

XRP Is Set To Have A Major Price Surge – Analysts Suggests

Bollinger Bands, a widely-used technical indicator among traders, has drawn attention to a compelling pattern suggesting a potentially significant increase in XRP’s value has emerged on the price chart. 

 

 

Developed by renowned trader John Bollinger, these bands consist of a simple moving average flanked by two standard deviations. When the bands narrow, it typically signifies a period of low volatility, often preceding major price movements. 

Currently, the analysis reveals a notable narrowing of the bands, reminiscent of a similar occurrence in 2017. Back then, XRP experienced an unprecedented price surge of 55,000%, reaching a peak of $3.30 per token in early 2018.

Although similar narrowing occurred subsequently, it did not predict movements as dramatic as in 2017. For instance, in late 2020, this pattern preceded a significant sevenfold increase in XRP’s price, reaching nearly $2 per token by April 2021. The ongoing narrowing of the Bollinger Bands, which began in November 2022, strengthens the case for a potential rise in XRP’s value in the near future. 

Meanwhile, XRP demonstrated resilience amidst recent market volatility. Currently priced at $0.4318, it has established a robust support level at $0.44. This level has been tested multiple times over the past year, offering a strong foundation for potential future growth. Analytics indicate that rising trading volumes and the formation of a double-bottom pattern suggest XRP could be on the brink of a significant price increase. 

If XRP fails to breakthrough the $0.4450 resistance zone, it could initiate another decline. The initial support on the downside is around the $0.4350 level and the channel trend line. The next major support is at $0.4310, aligning with the 50% Fibonacci retracement level of the upward move from the $0.4204 swing low to the $0.4430 high. A downside break and close below the $0.4310 level could lead to a continued decline toward the $0.420 support in the near term.

Ethereum Launches First “Attackathon”: $2 Million Bounty for Crowdsourced Security Audit

Ethereum is set to launch its first hackathon, the “Attackathon,” with a $2 million reward pool, aiming to be its codebase’s largest crowdsourced security audit. The four-week event invites security researchers to find the protocol’s code vulnerabilities. Participants must follow specific rules; only significant, rule-compliant reports will be rewarded. 

 

Ethereum is set to launch its first hackathon

 

The event begins with a technical walkthrough of Ethereum’s code to prepare participants for identifying potential vulnerabilities. After the event, Immunefi, the bug bounty platform hosting the Attackaton, will compile a report detailing the discovered vulnerabilities. 

The Ethereum Protocol Security (EPS) team has already contributed $500,000 to the prize pool and is seeking sponsors to raise an additional $1.5 million by August 1. They also plan to host similar hackathons with every hard fork, including the upcoming “Pectra” hard fork, expected in late 2024 or early 2025. This upgrade will combine the “Prague” and “Electra” updates, introducing significant features like a “social recovery” feature to simplify wallet management. 

Hackathons are common in the tech world, including the cryptocurrency space. Other prominent blockchains host similar events to improve security and innovation, often offering bug bounties to incentivize ethical hacking. According to Immunefi, most bounties range from tens to hundreds of thousands of dollars, with the largest reward offered by LayerZero at $15 million.

The Ethereum Attackaton aims to set a new standard for security audits in cryptocurrency by involving the community in a structured and rewarding way. This initiative reflects a broader trend in the crypto industry towards community-driven security measures. 

Furthermore, Ethereum’s Attackaton represents a significant step towards enhancing the security and resilience of its protocol, attracting top-tier security researchers and developers. The broader implications for the cryptocurrency space are clear: collaboration and proactive measures are vital for sustaining and advancing blockchain technologies. 

Asian Market Mixed, Japan’s Nikkei 225 Hits Another Record High With Attention On the Federal Reserve

In today’s trading, Asian shares were mixed following Federal Reserve Chair Jerome Powell’s remarks to Congress, which did little to alter investor’s expectations regarding the timing of a Fed interest rate cut. 

 

Tokyo’s Nikkei 225 index hit a new intraday high increasing by 0.6% to 41,831.99 reaching a new all-time high but later retreated, dipping 0.1% to 41,536.10 by midday.

Over the past year, the Nikkei 225 index has surged nearly 30%, as investors have shown particular enthusiasm for technology-related shares, fueled by the growing potential of artificial intelligence. Additionally, export-focused companies have experienced significant gains, driven by substantial profit increases due to the weak Japanese yen.

In Hong Kong, the Hang Seng index rose 0.4% to 17,587.16, while the Shanghai Composite index fell 0.3% to 2,949.60.

China reported that its consumer price index dropped to 0.2% in June from 0.3% in May, falling below expectations due to declines in prices for foods other than pork. Factory prices fell 0.8% matching expectations. Core inflation, excluding food and energy edged up 0.6%. While pork prices increased, beef prices declined. Tourism spending also slowed.

Meanwhile, market watchers are concerned about deflation risks, citing weak domestic spending, which may push China to rely more on exports to sustain its economy. This contrasts sharply with the US, where prices remain high. Traders are now looking to Friday’s trade report for further insights into China’s economic trajectory. 

Lynn Song of ING Economics stated that weak consumer confidence continues to drive consumption towards better value-for-money purchases, and competition in the EV sector continues to drive prices down, suppressing overall inflation.

Elsewhere in Asia, Kospi dropped 0.2% to 2,862.89. Meanwhile, Taiwan’s Taiex and India’s Sensex both rose by 0.2%.

Australia’s S&P/ASX 200 declined by 0.3% to 7,806.30

Ethereum News: Ethereum (ETH) Price Surges Amid Signs of Market Recovery; 21Shares Moves Forward With Spot Ethereum ETF Approval In Updated S-1 Filing

After a stressful week, the cryptocurrency market is showing signs of recovery. Bitcoin and other cryptocurrencies have stopped their steep declines, leading to a 4.15% increase in the overall market cap. Ethereum (ETH), has also increased by 5.09% in the last 24 hours. 

 

 

Last week, Ethereum (ETH) followed Bitcoin’s downward trend, dropping 11.20% and falling below $3,000. It started weak at $3,454 and hit a low of $2,810 last Friday. Currently, Ethereum is trading at $3,075.05. Over the past month, Ethereum’s (ETH) price has fallen by 16.78%.

In early June, Ethereum was trading around $3,700 after breaking resistance at $3,000 and $3,500. However, as the market turned bearish, it dropped below $3,500 for the rest of the month. 

Meanwhile, 21Shares, an investment asset management firm, has filed amendments to its S-1 under the timeline set by the SEC for a spot Ethereum ETF. As previously reported, the filing on Monday, July 8, indicates that 21Shares is progressing with the SEC’s feedback to launch the spot Ethereum ETF for trading.

Earlier, the SEC had returned S-1 registrations for spot Ethereum ETFs from 21Shares and other applicants with minor comments. The SEC requested the filers to resubmit amended S-1 documents by July 8, 2024, expecting that they would address the issues raised in the feedback. 21Shares responded promptly by submitting the necessary corrections in the afternoon on the deadline day. 

Amid these developments, Nate Geraci, an ETF expert from the ETF institute, has suggested that the new filings could potentially alter the timeline for launching the ETF product. He also mentioned an expectation for the product to be available by July 15th, indicating that SEC approval of the recent filings may come within the next one or two weeks. 

Market anticipation of these developments is already evident, particularly in Ethereum’s performance. As of now, Ethereum is trading at $3,071, showing a 5% increase over the last 24 hours, with trading volume up by 116% according to CNF Marketplace. The imminent launch of the spot Ethereum ETF is anticipated to trigger a significant bullish trend for the asset. 

Asian Market Mostly Showed Gains, Japan’s Nikkei 225 Hits Another Record High

In today’s trading session, the Asian market mostly gained as the Nikkei hit a new all-time high, tracking a mixed session on Wall Street with a keen focus on the upcoming inflation data and earnings season.

 

 

Nikkei’s 225 index surged 2% closing at 41,580.17 marking a new all-time high. Enthusiasm over artificial intelligence-related technologies and a weak yen continued to drive equities higher. 

Technology-related shares led the gains, with Tokyo Electron soaring 3.8%, and Advantest climbing 4.1%. Precision tools maker Disco Corp. increased by 2.5%, while Shin-Etsu Chemical rose by 2.7%. 

In China, the Shanghai Composite index rose by 1.26% reversing earlier losses and rebounding slightly from five-month lows as investors look forward to significant upcoming economic data, particularly China’s inflation figures set to be released the following day to gauge the economic outlook.

Yesterday, the People’s Bank of China (PBoC) tightened its grip on interest rates by launching a new mechanism to influence short-term borrowing costs. 

Meanwhile, China-EU trade tensions mounted, with Beijing planning an anti-dumping hearing next week regarding brandy imported from the EU.

Moreover, China’s trade figures, loan data, and vehicle sales numbers are expected later this week, offering further insight into economic trends and consumer behavior. 

Hong Kong’s Hang Seng index edged up by 0.09%, slipping for the fourth consecutive session and nearing its lowest level in 11 weeks amid losses across all sectors. 

India’s SENSEX rose by 0.38%, halting losses from the previous two sessions and reaching a fresh record peak, buoyed by foreign capital inflows and expectations of a dovish statement from the Federal Reserve Chair. New data from the Reserve Bank of India (RBI) revealed that the employment rate increased to 6% in FY2024, the highest since 1982, up from 3.2% in FY2023. 

In Australia, the S&P/ASX 200 gained 0.86% despite a decline in consumer confidence in July due to ongoing concerns about hight inflation, elevated interest rates, and a weak economy, business sentiment surged to a 17-month high in June. 

XRP Update: XRP Whale Transfers 37 Million Tokens Amid Lawyer’s Disclosure Of Ripple Vs. SEC Timeline

Over the last 24 hours, XRP has witnessed a massive whale activity. These transactions occur at a crucial time as the legal battle between Ripple and the SEC nears its conclusion. In addition, this activity has fueled speculation of more movements by XRP whales. 

 

 

According to Whale Alert, a whale transferred a total of 37.9 million XRP tokens to Bitstamp. The transaction, valued at $16.06 million, originated from an undisclosed wallet. This exchange occurred just before the expected conclusion of the Ripple vs. SEC case. 

Fred Rispoli, a prominent Ripple advocate, has shared insights regarding potential resolution dates for the ongoing SEC vs. Ripple case. Rispoli indicated that the case could conclude either by July 31 or July 13. The latter date holds particular significance due to a pivotal ruling by the Federal Court Judge Annalisa Torres. 

On July 13, 2023, Judge Torres determined that XRP qualifies as a commodity when sold to the general public. In her Summary Judgement, she stated, “Therefore having considered the economic reality and totality of circumstances surrounding the Institutional Sales, the court concludes that Ripple’s Institutional Sales of XRP constituted the unregistered offer and sale of investment contracts in violation of Section 5 of the Securities Act. 

This ruling was a watershed movement for the Ripple community, triggering a price surge of over 100% for XRP. Moreover, it established a precedent that continues to impact other legal battles within the crypto industry. Moreover, Judge Amy Berman Jackson of the US District Court for the District of Columbia dismissed some of the SEC’s charges against Binance. 

Amid ongoing legal developments, market observers are closely monitoring XRP’s performance. At press time, XRP is trading at $0.439 resistance level. Breaking through this resistance is essential for XRP to potentially initiate a significant recovery. However, even if successful, XRP faces additional obstacles at $0.4350 and $0.450, which may limit its upward momentum in the near term. 

Asian Markets A Sea Of Red: Japan’s Real Wages Drop For 26th Consecutive Month; China Stocks Fall For Fifth Day

In today’s trading, Asian markets mostly declined as investors anticipated key economic data from the US and China later this week. At the same time, overnight election results in France pointed to a hung parliament. 

 

 

In Japan, Nikkei 225 fell 0.32% to close at 40,780.7, while the broader Topix index decreased by 0.57% to close at 2,867.61. These losses occurred as Japan’s real wages declined for the 26th consecutive month. 

Data from Japan’s Ministry of Health, Labor, and Welfare indicated that real wages fell 1.4% year-on-year in May, although nominal wages increased by 1.9% to 297,151 yen ($1,850). May’s figure also marked the fastest wage increase in 11 months. 

The value of loans in Japan grew by 3.2% year-on-year in June 2024, accelerating from a revised 2.9% increase in May and exceeding market expectations of 3.1 growth.

Meanwhile, Japan’s current account surplus increased to JPY 2,849.9 billion in May 2024, up from JPY 2,010.1 billion in the same month last year, surpassing market forecasts of a JPY 2,450 billion increase. 

Hong Kong’s Hang Seng Index fell by 1.68% at 17,524.06, while mainland China’s CSI300 declined by 0.85% closing at 3,401.76, marking its fifth consecutive day of loss and reaching its lowest level since February. 

This decline followed the implementation of provisional EU tariffs on China’s electric vehicles, which took effect on Friday. Simultaneously, the US imposed trade restrictions on two Chinese firms due to their connections with military training. 

Market participants are preparing for a busy week ahead, with the release of key economic indicators including inflation data, trade figures, and the outstanding loan growth rate, all of which are anticipated to offer further insights into China’s economic trajectory. 

Elsewhere in Asia, South Korea’s Kospi fell 0.16% to 2,857.76. Australia’s S&P/ASX 200 went down by 0.8% closing at 7,763.20.