Equities mixed in Asia

Asian markets drifting

Asia has plenty of risk points to deconstruct today, some positive, some not so, and it is hardly surprising that regional equities are trading each side of unchanged across the region. On Friday, Wall Street finished mixed as the yield curve continued flattening. The S&P 500 edged 0.14% lower, with tech outperforming and lifting the Nasdaq by 0.40%. The possibility of a faster Fed taper weighed on the Dow Jones which fell by 0.75%. In Asia, US futures are following China, all three indices adding 0.30% in subdued trading.

In Japan, the Nikkei 225 is quiet ahead of a public holiday tomorrow and government budget announcements, the Nikkei 225 creeping 0.05% lower. The Kospi has surged, thanks to a 5.0% surge by Samsung Electronics. China markets have risen as the PBOC signals it may have seen enough yuan strengthening for now and adding liquidity today, as well as leaving the one and five-year LPR’s unchanged. The Shanghai Composite has risen by 0.65%, with the CSI 300 climbing by 0.30%. In Hong Kong, a series of small fines levied on China tech giants over the weekend has pushed the Hang Seng lower by 0.35%.

The cautious mood is prevalent across ASEAN and Australia, especially after the resource and manufacturing-centric Dow Jones fell heavily on Wall Street on Friday. Singapore has risen by 0.25% with Taipei and Kuala Lumpur unchanged. Jakarta is 0.20% lower while Bangkok has dropped by 0.50% and Manila by 0.25%. Soft commodity prices are weighing on Australia today, with the All Ordinaries falling by 0.35%, and the ASX 200 tumbling by 0.50%.

With anti-lockdown riots sweeping Europe over the weekend, along with increasing restrictions and surging cases, Eurozone equities are likely to open lower this afternoon. Fears of a fourth wave in Europe eroding the global recovery have played their part in Asia’s cautious mood today, and that reality will definitely weigh on the Europeans themselves 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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