Correction Sends Asian Stocks South

Equities are sagging in Asia

A generally upbeat session in New York has reversed course in Asia, with regional equity markets easing lower this morning. The chief culprits appear to be the look below the hood of the Chinese and Australian data releases this morning, and threats of further travel bans on Chinese officials by Washington DC.

New York’s session was positive, as the coronavirus vaccine hopes lifted stock markets. The S&P 500 rose 0.91%, the Nasdaq rose 0.60%, and the Dow Jones rose 0.86%. The Twitter hack, coming after-market, has seen futures on all three indices ease by around 0.30%, adding to the gloom in Asia this morning.

The Nikkei 225 is down 0.75% this morning, with the Kospi lower by 0.60%. Mainland exchanges are having another tough day, as retail investors retreat after the recent oversized gains, amid signals from government markets had risen too far, too soon. The Shanghai Composite has fallen 1.45%, with the CSI 300 1.70% lower. The Hang Seng has declined by 1.25%.

Across the region, Singapore is 0.55% lower, Kuala Lumpur is flat with Jakarta the only outperformer, rising 0.45% ahead of the BI rate decision this afternoon, where a cut is expected. Australia’s All Ordinaries and ASX 200 are both 0.75% lower after the drop in full-time employment.

The overall move looks corrective in Asia, and Europe may not take such a negative tone this afternoon. Vaccine hopes are increasing and based on sound progress rather than hope, and this should underpin equity markets in Europe and North America today.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific, from 2016 to August 2022
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley was OANDA’s Senior Market Analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV and Channel News Asia as well as in leading print publications such as The New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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