Equities jump on Ukraine talks

Asia equities mixed

US equities closed lower on Friday as heightened Ukraine tensions weighed on sentiment, complicated by a long weekend with the US closed for President’s Day today. The S&P 500 fell by 0.72%, the Nasdaq by 1.23%, and the Dow Jones by 0.68%. US yields fell across the curve hinting that US investors preferred safety over risk into the long weekend.

Although it is a US holiday today, the futures markets are open in Asia, and US indexes have jumped into positive territory after the US and Russia agreed in principle to a French-brokered summit over the Ukraine. S&P futures are 0.58% higher with Nasdaq and Dow futures rising 0.62% and 0.56% respectively.

Asia has not shared the same positivity though, concentrating on a fragile New York close on Friday and China nerves, with Bloomberg running another excellent story on a wall of China property bond payment and restructuring deadlines this week, and China leaving its one and five-year Loan Prime Rates unchanged today. Property sector nerves will weigh on China stocks this week.

It is a mixed day in Asia with the Nikkei 225 down 0.65%, and the Kospi 0.15% lower. China’s Shanghai Composite is 1.0% lower with the CSI 300 retreating 0.75% and Hong Kong falling by 0.85%. Singapore has edged 0.15% higher while Taipei is unchanged. Australia has seen no peace dividend from the full reopening of its borders today. The All Ordinaries has climbed 0.05% on M&A headlines, but the ASX 200 has closed lower by 1.0%.

European markets will likely seize on US/Russia summit hopes to lift equities to a positive start, however, they will remain at the mercy of headline ping pong around the situation.

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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