Asian equity markets are mixed

Asian markets higher after Wall Street gains

Asian equity markets are mostly higher today after the S&P 500 and Nasdaq closed at record highs last night. The exception is China markets, where the PBOC withdrawing liquidity and nuclear nerves have pushed mainland and Hong Kong markets lower on Tuesday.

Overnight, the S&P 500 rose 0.18%, the Nasdaq jumped 0.74%, with the Dow Jones falling 0.25% as the rotation trade falls out of favour pre-FOMC. Futures on all three indexes have risen in Asia by around 0.10%, underpinning sentiment locally.

The Nikkei 225 has jumped by 1.0 % today, although the Kospi has risen by only 0.17%. Speculation that the BoJ will announce an extension to their pandemic support measures until September at Friday’s policy meeting seems to be supporting sentiment. However, China markets are under pressure, with the Shanghai Composite down 1.0% while the CSI 300 has fallen by 1.30%, with Hong Kong lower by 0.90%.

China and Hong Kong equity markets are under pressure this morning, even as the rest of Asia is following Wall Street higher. Two factors appear to be at play here. Firstly, the PBOC drained a net CNY 10 bio via the repos after the long weekend. Secondly, every major news outlet is running a story about potential problems with a French-designed nuclear power plant located in Taishan, located west of the Pearl River Delta and just 140 km from Hong Kong. There have been reports of a leak at the plant, and the Biden administration has been in contact with French and Chinese officials about the issue.

Elsewhere, Singapore has risen 0.83%, with Taipei up 0.60%, with Jakarta and Kuala Lumpur unchanged. Australian markets are also tracking higher, the ASX 200 climbing 1.120% and the All Ordinaries rising by 0.70%.

European and UK equities markets will likely open firmer, following the New York and Asia lead, with China’s travails regarded as a local issue for now.

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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