Asian equities are mixed

Record closes on Wall Street, Asia cautious

Wall Street rose modestly overnight as receding omicron fears continued attracting buyers out of cover and back into equities, with the S&P 500 and Dow Jones having record closes. The S&P 500 rose by 0.14%, the Nasdaq eased by just 0.10%, and the Dow Jones rose by 0.25%. Most price action needs to be taken with a grain of salt at this time of the year, but the omicron rear-view mirror trade appears to be favouring value overgrowth right now. In Asia, some long-covering has appeared, pushing futures on all three slightly lower by 0.05%.

Asia is having a mixed day in contrast, and it appears that some pre-New-Year’s-Eve book squaring is weighing on some markets. Japan’s Nikkei 225 has fallen by 0.35%, with South Korea’s Kospi down by 0.40%. Mainland China is enjoying a firm session, helped by dovish MoF comments earlier this morning that China would guide interest rates lower for 2022 government bond issuance. The Shanghai Composite is 0.80% higher, while the CSI 300 has jumped by 1.05%. Hong Kong is just 0.30% higher, a successful SenseTime IPO balanced by a slump in Evergrande stock after the company once again missed two offshore bond payments on Tuesday, totalling around USD 220 million

Singapore has eased by 0.30%, while Taipei and Jakarta are just 0.05% lower, and Kuala Lumpur is down 0.10%. Bangkok is 0.05% higher with Manila closed for a public holiday. Similarly, Australian markets are also subdued ahead of New Year, the ASX 200 and All Ordinaries edging 0.10% lower. Asia, ex-China, looks to have closed their books for the year.

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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