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Asian equities are mixed

Hawkish Fed comments leave Asian equity markets mixed

Equities are mixed in Asia after Vice-Chairman Clarida’s comments on tapering and rate hikes sent equities lower overnight on Wall Street. The S&P 500 fell 0.46% while the Nasdaq clung onto some gains, closing just 0.13% higher, while the Dow Jones fell by 0.92%. Sentiment was not assisted by the ADP Employment data, which rose by much lower than forecast, raising fears that tomorrow’s Non-Farm Payrolls will disappoint.

 

In Asia, futures on all three US indices have recovered slightly, rising by around 0.20%. That has lifted the Nikkei 225 by 0.50%, helped along by some strong earnings by local heavyweights, while Japan’s spiralling virus caseload is being ignored for now. The Kospi, though, has edged lower by 0.10%, while Taipei is unchanged.

 

In China, the Securities Times article admonishing online gaming has sparked another sell-off in some equity markets, with fears that more government clampdowns on the tech sector are imminent.  The article marked another salvo at the online gaming industry, citing teenage addiction and favourable tax treatment. This is the second government mouthpiece to take a shot at the online gaming sector this week, and investors who ignore this warning do so at their peril.

The Shanghai Composite is unchanged, but the more tech-heavy CSI 300 has fallen by 1.05%, while Hong Kong, somewhat surprisingly, is unchanged on the day.

 

Regionally, markets are toying with each side of unchanged, with Singapore down 0.10% while Kuala Lumpur is up 0.10%. Jakarta has risen 0.45% ahead of GDP data later today, with Bangkok climbing 0.35% and Manila also just 0.10% higher. Australian markets are much the same, with the ASX 200 and All Ordinaries also 0.10% higher.

 

The modest recovery by the US futures should be enough to generate a slightly positive start for European equities. However, as previously stated, equity markets look like they are settling in to wait for tomorrow’s US employment data.

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 [4]

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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