Asia markets mixed ahead of nonfarm payrolls
US equity markets edged higher overnight despite US Initial Jobless Claims falling to a post-pandemic low. After the weak ADP Employment earlier this week, markets, always looking for a reason to FOMO-buy, have set their stall cautiously in a lower Non-Farm, more distant Fed taper corner. The S&P 500 rose 0.28%, and the Nasdaq edged 0.14% higher, with the Dow Jones rising by 0.37% after a tough couple of days. US futures on all three continue to move higher in Asia, increasing by around 0.20%.
That cautious bullishness has translated into an uneven day in Asia, posting a very mixed regional performance. In Japan, the Nikkei 225 has rocketed 1.90% higher as the retail fast-money army puts its cash behind more stimulus measures from the government ahead of an expected October election. The Kospi is also higher, rising by 0.75%.
In China, the Caixin Services PMI slumped, sending the Shanghai Composite down 0.50%, with the CSI 300 slipping by 0.10%. Hong Kong has fallen by 0.75%. Singapore is unchanged, with Kuala Lumpur edging 0.15% higher, while Taipei has rallied strongly by 0.80%. Bangkok has jumped by 1.05%, while Jakarta is 0.25% lower. Another 4 million vaccines on the way have helped Australian markets rise today. The ASX 200 has climbed by 0.70%, while the All Ordinaries has rallied by 0.80%.
Once again, against a background of pre-Non-Farm caution, local markets have been left to their own devices, with the more “tech-facing” North Asia bourses outperforming once again. There is no consistent theme in Asia at the moment, although that may change next week. After a small rally in New York, European stocks should be happy to take their cue from Asia and open higher. Gains will be limited ahead of the US data, however.
Looking ahead into next week for Asia, China’s trade data will be the centre of focus, and CPI will also garner market attention.
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