Asian equities rally once again

Asian equities mostly held their own yesterday in the face of the weekend Russia sanction news, although European ones, as expected, were stretchered off injured. A Ukraine-Russia meeting was as good a reason as having a clutching-at-straws rally. That’s certainly what New York thought, likely also pricing in that the West didn’t have a lot more sanctions bad news to dish out.

That saw New York unwind much of its intraday losses on a peak-Ukraine rally. The S&P 500 closed just 0.24% lower, while the Nasdaq rallied to close in positive territory, rising 0.41%. The Dow Jones, with a higher beta to the Ukraine conflict and Russian sanctions, finished only 0.50% lower. US futures have eased slightly in Asian trading.

Asian markets are rallying powerfully though on easing Ukraine fears and strong regional PMIs, especially from China. Japan’s Nikkei 225 is 1.50% higher with South Korea closed for a holiday. In China, the Shanghai Composite and CSI 300 have climbed by 0.30%, while omicron malaise sees the Hang Seng unchanged.

Singapore has jumped 0.85% higher, with Taipei leaping 1.65% higher, and Jakarta rallying by 1.05%. Malaysia is closed today but Bangkok has climbed 0.70%, and Manila by 0.85%. Australian markets are completely unperturbed by the huge flooding in Queensland and New South Wales, with the ASX 200 rising by 0.65%, and the All Ordinaries rallying by 0.85%,

The overnight price action, and a strong performance by Asia today is likely to be enough for European investors to dip their toes into the markets once again this afternoon. With a much higher correlation to the dramas in Eastern Europe, gains will be both limited and tentative and that will be the state of play in Europe for some time to come.

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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