China equities Byte Dance higher in Asia

China Equities climb after Tiktok decision

Wall Street sagged on Friday, with the S&P 500 falling 1.07%, the Nasdaq falling 1.07%, and the Dow Jones easing 0.90%. However, the presidential decision on TikTok over the weekend has seen US futures Byte Dancing into the green today, which is holding regional bourses steady in early trading. S&P 500 e-mini, Nasdaq and Dow Jones futures have risen in Asia, after the negative finish in New York. All three have climbed this morning strongly, with the S&P 500 and Nasdaq up over 0.50%.

Japan markets are closed, but the Kospi has risen 0.20%. Mainland China though has grasped at the weekend TikTok news, sending the Shanghai Composite and CSI 300 leaping higher by 2.0% on the open. The rest of the Asia Pacific is circumspect, with Hong Kong down 0.60%, and Singapore and Sydney unchanged.

The TikTok agreement, should it pass in its current form, is a massive win for Byte Dance, and should continue to buoy Chinese markets and US futures today. The feel-good factor will likely fade across the rest of the region as another US/China geopolitical sigh of relief fades. Much will depend on whether the US stock index futures can hold onto their early Asia gains, much as it has for the past three sessions.

The week ahead has little in the way of data front around the globe. China had just released its one and five-year Loan Prime Rate decisions, with rates remaining unchanged, as expected. That is entirely consistent with the intention of Chinese policymakers to stimulate the economy as needed in a much more targeted way and attempting to avoid another explosion in asset prices such as we saw post the GFC. Investors will have to wait patiently for some tier-1 data until the end of the week, with the release of US Durable Goods.

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
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is 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, Channel News Asia and the New York Times. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley