Equities move higher in Asia

Asian stock markets follow US index futures higher 

Although Wall Street endured a torrid whip-saw session, all three major indices managed to crawl into the green by the end of the session. The S&P 500 finished 0.30% higher, the Nasdaq 0.37% higher, and the Dow Jones edged 0.19% higher.

Asia-Pacific stock markets have started the day much stronger though, thanks to our old friend, the after-market US stock index futures. The futures have rallied strongly today, perhaps on hopes of a US fiscal stimulus deal. The S&P 500 e-minis have risen 0.65%, with the Nasdaq futures climbing 0.80% and the under-pressure Dow Jones futures rising 0.45%.

That has lifted the Nikkei 225 by 0.70%, and the Kospi by 0.95%, China’s Shanghai Composite, CSI 300 and Hang Seng have risen 0.30%. Kuala Lumpur has jumped 0.80%, despite its political travails, with Singapore higher by 0.60%. The ever-effervescent Australian exchanges needed no second guess, the ASX 200 jumping 1.40%, and the All Ordinaries leaping 1.60% higher.

Asia has been taking its cues from the US index futures throughout the week. It will, of course, only take one negative headline from the US for the dentists of Minnesota to rush for the exit door, dragging Asia down with them. The interconnected digital world is a strange place at times. With that in mind, although the session has started strongly, readers should take care not to get sucked into a “worst is over” false sense of security.

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 as well as in leading print publications including 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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