Equities mixed in Asia

Asian stock markets mixed

Stock markets in Asia are drifting today after Wall Street finished the day slightly lower overnight after soft US employment data, Covid-19 fears and US fiscal stimulus disappointment continued to weigh down on market optimism. Regional markets seem content to ride out the week in a quiet manner, with market price action being dictated by events in Europe and the US at the moment.

Nasdaq futures have fallen 0.80% in Asia, and that has sent the Nikkei 225 is 0.20% lower with the Kospi falling 0.65%. China’s Shanghai Composite has risen 0.40%, with large caps outperforming. The CSI 300 has risen 0.25% with Hong Kong 0.50% higher. Taiwan is 0.50% higher with Singapore 0.60% higher. Meanwhile, Australian markets have retreated on China concerns and the general risk-off falls seen overnight. The ASX 200 has declined 0.45%, with the All Ordinaries down 0.25%.

Regional markets appear to be taking their cues from China today, but rallies are unlikely to be prolonged, with Europe and the US set for another nervous end to the week. With US fiscal stimulus remaining elusive, and Covid-19’s spread across Europe and the US escalating, northern hemisphere markets are likely to finish the week on a soft note as investors reduce risk into the weekend. That will cap gains in Asia today.

An item giving me cold sweats is a Blomberg report today that Hong Kong brokers are offering 20-1 leverage to retail investors for the upcoming Ant Financial IPO. With a date yet to be set, thanks to Chinese government holdups, the frenzy surrounding the IPO increases by the day, notably by the brokerages themselves. After 30 years in the markets, I can tell readers that if something is too good to be true, it always is. And when the bright young financial things of each generation say this time it’s different, it never is.

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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