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.
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