Asian markets in calm waters

Asian equities hover between slightly mixed and unchanged

Asian equities are off to a quiet start this week, with little in the way of concrete drivers from the weekend to drive price action, Australia, New Zealand, and Hong Kong markets closed, as well as the UK this afternoon. With volumes holiday-thinned, the Nikkei 225 is 0.25% lower, while the Kospi is down 0.10%.

Mainland China is slightly in the green after positive headlines from Evergrande and the PBOC over the weekend. The PBOC announced on Saturday that it would safeguard the legal rights of home buyers and provide greater support for the real economy. The targeted stimulus is a theme in recent times from China, as opposed to previous stimulus strategies. Reuters also reported that Evergrande had made progress restarting home construction and that its chairman said it would deliver 39,000 units in December. However, these positive developments have been tempered by rising virus cases, leaving the Chinese markets drifting. The Shanghai Composite is 0.18% higher, and the CSI 300 has eked out a 0.05% gain.

Regionally, Singapore is unchanged while Kuala Lumpur has gained 0.65% and Bangkok 0.20%. Taipei is 0.86% higher, with Manila down 0.10% and Jakarta up 0.15%. US futures have restarted trading today and are having a quiet session as well.  Nasdaq futures gained 0.25%, S&P 500 futures 0.10%, while Dow futures are unchanged. It looks like only bored Minnesota dentists are playing in the space today.

Short of a headline surprise, I expect Europe to follow much the same pattern this afternoon.

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Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific, from 2016 to August 2022
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley was 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 and Channel News Asia as well as in leading print publications such as 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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