Asian markets edge lower

Asian equities drift lower

Despite some intra-day volatility, Wall Street finished the day mixed and almost unchanged. The S&P 500 lost 0.11%, while the Nasdaq rose by 0.13% and the Dow Jones fell by 0.21%. Despite the futures on all three indexes adding around 0.30% in Asia as progress was made on the US infrastructure package, Asia has, for the most part, drifted lower in sympathy with the overnight session.

Asian markets remain equally calm today after New York’s drifting. A US bi-partisan group appears to have reached a preliminary agreement on the US infrastructure package and will be presented to the US President today. Its scope and how it will be paid for will interest financial markets the most, although it has caused no ripples in Asia. The infrastructure programme progress seems to have halted the negativity if not wholly turned sentiment across the region. By and large, Asian markets that are more “tech-heavy,” are following the Nasdaq once again. Meanwhile, the more growth-orientated ones are mirroring the S&P 500 and Dow Jones.

The Nikkei 225 is unchanged, with the Kospi following the Nasdaq 0.40% higher. Mainland China’s Shanghai Composite and CSI 300 have drifted 0.15% lower, while Hong Kong is 0.10% higher. Singapore has reversed course and added 0.25%, with Taipei rising 0.20%. But Kuala Lumpur and Jakarta have fallen by 0.40%, Bangkok is down 0.60%, and Manila is down 0.15%. Australian markets are equally quiet, both the ASX 200 and All Ordinaries reversing slight early losses to be unchanged for the session.

That points to an equally nondescript opening for European equities this afternoon. It remains a day trader’s market this week, and intra-day swings will continue to shift on Fed speaker headlines. It would take a big miss lower by durable goods and PCE tonight to shift the dove needle materially – we will remain at the mercy of Fed-speak and a schizophrenic intra-day market.

Next week should see the return of more directional moves.

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