Asia stocks starts the week in the green

Asia higher on vaccine hopes, stimulus talks

Although Wall Street saw continued profit-taking push equities to a lower close on Friday, the US index futures have recouped much of those losses in Asia this morning. That has lifted equity markets across the region into the green to start the week. The chief drivers were that US fiscal stimulus talks are continuing and hopes that the first Covid-19 vaccines will get rapid FDA approval within the next two weeks.

The S&P 500 e-mini, Nasdaq 100 and Dow Jones futures have all risen by around 0.40% this morning. That has pushed the Nikkei 225 0.40% higher, with the South Korean Kospi leaping 1.80%. The picture is similarly rosy in China, with the Shanghai Composite and CSI 200 climbing 0.90%. However, the Hang Seng is flat as Covid-19 prompts renewed restrictions and the postponement of the Singapore Hong Kong travel bubble.

Singapore has shrugged that news off, climbing 0.70% after Q3 QoQ GDP growth surged by 9.0%. Taiwan, Manila and Jakarta are up 1.0% with Kuala Lumpur lagging, up just 0.15%. Malaysia is weighed down by the risks surrounding the impending budget vote, rising Covid-19 cases. In Australia, resource stocks have led the market higher on the global recovery story. The ASX 200 and All Ordinaries increasing 0.60%.

With sentiment and not data pushing markets higher today, they do remain vulnerable to headline-driven corrections. They are likely to be short-term in nature though, and Europe should happily hitch itself to Asia’s wagon this morning and open higher this afternoon.

In the US October data for Personal Spending and Durable Goods will be released on Wednesday, and are the highlights in a mostly second-tier week. Both of these indicators should show improvements but have come before the surge in Covid-19 cases sparked more movement restrictions across the United States.

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

Latest posts by Jeffrey Halley (see all)