Asian markets calm as Wall Street jumps

Asian equities drift higher on sympathy trade

Overnight, the buy-the-dip FOMO gnomes had another day in the sun on Wall Street, thanks to decent US GDP data and indications that omicron is less symptomatically aggressive. Record highs were in sight once again as the S&P 500 jumped 1.02%, the Nasdaq powered 1.18% higher, and the Dow Jones gained a healthy 0.74%. In Asia, futures on all three have maintained their gains, drifting around 0.10% higher today.

The overnight rally on Wall Street has dragged seemingly still reluctant markets in Asia higher today as well, with regional bourses still refusing to fully buy into the hype from the US. The Nikkei 225 is 0.10% higher, despite an upward revision to Japan’s 2022 GDP forecast by the government. South Korea’s Kospi is 0.35% higher.

In China, a lockdown of the city of Xian to combat a virus outbreak has had no noticeable impact on local equity markets, which are recording modest gains. The Shanghai Composite and CSI 300 have gained 0.20%. Hong Kong, meanwhile, has posted a somewhat healthier gain of 0.45%.

Singapore has shrugged of VTL restrictions to gain 0.25%, with Kuala Lumpur rising by 0.40%, and Taipei gaining 0.60%. Jakarta is 0.35% higher with Bangkok rising by 0.65% and Manila jumping 1.10% higher. Australian markets have also risen in sympathy, the ASX 200 and All Ordinaries gaining 0.35%.

That all set the scene for a modest rally in European markets this afternoon, although the UK’s CBI Monthly Growth Indicator, and UK Car Production released this morning, both disappointed and may cap sentiment in London this afternoon. It would take some huge downside misses from the US data dump this evening to unsettle what appears to be an inevitable Santa rally on Wall Street into the end of the week.

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

Latest posts by Jeffrey Halley (see all)