Asian equities follow New York split

Asian markets mixed

Wall Street had a mixed night overnight, even as US yields tracked lower. The dearth of data releases globally continued although the second-tier data from the US continued to be positive. The Case-Shiller House Price Index and US House Price Index releases rose as expected, while the Redbook activity report rose to 21.40% for December YoY, and the Richmond Fed Manufacturing Index and Dallas Fed Services Index both beat expectations.

Investors in big-tech trimmed long positions and it looked for all money like a defensive rotation from growth into value as the Nasdaq fell, while the Dow Jones gained. The S&P 500 was almost unchanged, rising just 0.10%. The Nasdaq fell by 0.56%, while the Dow Jones rose by 0.26%. In Asia, that trend has continued with Dow futures rising another 0.27%, with the S&P unchanged and Nasdaq futures falling 0.15%.

That has led to a North Asia ASEAN split today, with more tech-centric North Asia markets retreating, while ASEAN has moved higher. The Nikkei 225 and South Korean Kospi have dropped by 0.85%. Mainland China is under pressure, the Shanghai Composite easing 0.55% while the CSI 300 has retreated 1.0% lower. Hong Kong has followed them South, falling 0.65%.

Singapore has risen by 0.30% today, with Taipei jumping 0.80% higher, bucking the tech trend lower. Jakarta and Kuala Lumpur are unchanged with, Bangkok rallying by 0.15%, while Manila is 0.40% lower. Australian markets are full of optimism today, led by, you guessed it, banks, and resources. The ASX 200 and All Ordinaries have rallied by 1.15%.

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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