Asian equities are mixed today

Asian equities are mixed today with Asia’s heavyweights content to follow the lead of Wall Street overnight, where pre-earnings nerves, a flattening yield curve and a higher US dollar saw stocks edge lower. The S&P 500 eased by 0.24%, the Nasdaq edged 0.14% lower, and the Dow Jones fell by 0.35%. Ominously, US futures have continued lower once again in Asia. S&P 500 and Nasdaq futures falling 0.30% and Dow futures easing another 0.10%. Overall, it looks as if US markets are reducing exposure into the US CPI and the start of the earnings season. US markets are very much exposed to a tempering of 2022 outlooks by corporate heavyweights this time around and combined with inflation/taper fears we can expect a lot more two-way volatility in Q4.

Asia has contented itself with following Wall Street’s lead today ahead of China trade data and most markets are lower this morning. The Nikkei 225 is down 0.30% but the Kospi is 1.0% higher, led by exporting and manufacturing stocks on what I assume, is a weaker won. Mainland China is mixed, with the Shanghai Composite down 0.50% while the CSI 300 is steady, down just 0.05%. Hong Kong markets are closed this morning due to a typhoon.

ASEAN equity markets gain ground

ASEAN markets are very much in the green, as multiple announcements reopening the borders to tourism this week maintain bullish momentum across the region. It appears that ASEAN heavyweights are becoming a defensive play, with their exposure to commodities and the upside of tourism restarting, with its positive downstream effects. Singapore has leapt 1.30% higher today, with Jakarta climbing 0.35% and Bangkok rallying by 0.75%. Kuala Lumpur is 0.25% higher and Manila has gained 0.50%.

Australian markets have been unable to shrug off the drop in Wall Street overnight, and the slump in the US futures again in Asia, which has pushed local markets lower. The All Ordinaries has fallen by 0.25%, while the ASX 200 has retreated by 0.45%.

European markets are likely to take their cue from Wall Street and open slightly lower this afternoon. Wall Street will be very much beholden to the US inflation data tonight, but any gains will be tempered by caution ahead of the US earnings avalanche and persistent inflation nerves.

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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