Asian equities are mixed

US data sends Wall Street and Asia higher

Asian equities are mixed after strong US economic data saw Wall Street sharply reverse to a positive finish. Overnight, the S&P 500 rose 1.20%, the Nasdaq by 1.28% and the Dow Jones by 1.18% as the stock markets find their buy-the-dip legs again. Momentum has waned in Asia though, with futures on all three indexes easing by around 0.50% as the fast money reduces risk into the weekend. That has taken the wind out of the sails of Asian markets today.

Japan’s Nikkei 225 has crept higher by 0.35%, with South Korea’s Kospi just 0.10% higher. Mainland China markets have slipped into the red as momentum wanes around the government support comments earlier this week. Markets are probably looking to see the colour of the money in order for it to continue, and a Monday 1-year LPR cut could do the trick. Additionally, Shanghai’s covid restrictions announced today, are sapping sentiment. The Shanghai Composite is 0.30% lower, while the CSI 300 has retreated by 0.90%. Hong Kong, ever at the mercy of the fast-money retail herd, has suffered, even more, tumbling by 2.30%.

Regionally, Singapore is just 0.15% higher, Jakarta is 0.40% lower, Kuala Lumpur is 0.35% lower, and Taipei is 0.15% lower. Bangkok and Manila are unchanged. Australian stocks are finishing on a positive note, the ASX 200 and All Ordinaries rising by around 0.35%. Overall, it looks like Asia is content to do some modest rebalancing of position and risk reduction into the weekend, a theme I expect to be repeated in Europe this afternoon.

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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