Asian equities start the week lower

Asian markets follow Wall Street with losses

Wall Street finished the week on a sour note, with all three major indices closing lower in what was when all said and done, a bull-market correction in a slow week. We could be in for much the same this week ahead of a mouth-watering last week of the month and quarter. The S&P 500 closed 0.77% lower, as did the Dow Jones, while the Nasdaq retreated by 0.87% after Apple lost an App Store case. In the spirit of noisy range-trading, futures on all three have jumped in Asia on no news at all, defying the negativity in Asia. S&P 500 and Dow futures are 0.30% higher, with Nasdaq futures up 0.12%.

The Nikkei 225 has unwound early losses in Asia and is now down just 0.05% as stimulus hopes and bullish retail investor momentum rule the roost. Similarly, the Kospi is now down just 0.05%. Typhoons and the Ant Financial break-up story are weighing on China markets today, notably the Hang Seng where Ali Baba is listed. The Hang Seng has plunged 1.75%, while the Shanghai Composite is flat, and the CSI 300 is 0.40% lower.

Singapore has slumped by 0.85%, with Taipei 0.25% lower and Kuala Lumpur falling 0.70%, despite the government and opposition tentatively agreeing on party reform measures over the weekend. Bangkok is unchanged, with Jakarta falling 0.55% and Manila lower by 0.15%.

Australian markets are bucking the trend as M&A fever saw a higher offer for an attempted takeover of Sydney Airport today. The ASX 200 and All Ordinaries are 0.25% higher.

With a lack of strong directional drivers, Hong Kong aside, the rally in US index futures has taken the edge of early losses in Asia. Asian markets ex-Hong Kong are likely to continue to claw back earlier losses as nerves subside. I expect Europe to open flat this afternoon.

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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