SHANGHAI, Feb. 20 (SMM) – Most stock markets in Asia closed with losses during the Asian trading hours, weighing down LME zinc prices. Chinese stock markets were down 1.6% on Tuesday. Japan’s Prime Minister Taro Aso downplayed the possibility of foreign bond purchases by the Bank of Japan, disappointing investors. As a result, Japan's Nikkei was down 0.31%. LME zinc climbed to USD 2,166/mt after opening at USD 2,159/mt, but later sank below the 20-day moving average to a low of USD 2,142/mt. The February ZEW Economic Sentiment later released by the euro zone ad Germany rose and beat forecasts, pushing European stock markets up. A weaker US dollar also helped curb declines of LME zinc. Finally, LME zinc ended the day down USD 2/mt or 0.09% at USD 2,153/mt. Trading volumes were up 2,452 lots to 9,471 lots, while positions were down 1,009 lots to 299,795 lots.
Markets are eyeing the minutes of the latest interest rate meeting by the Bank of England. LME zinc should show some resilience and move between USD 2,140-2,165/mt on Wednesday. SHFE 1305 zinc contract prices are expected to test support at RMB 15,700/mt, with prices between RMB 15,700-15,850/mt. Spot discounts should be RMB 290-330/mt.