Asian markets mixed after Wall Street slips

Asian equities mixed after a torrid New York session

Overnight, sharply higher energy prices, and a procession of hawkish Federal Reserve officials on the wires, saw the gains of the previous day mostly wiped out, despite yields falling. Energy markets were turbulent overnight as Russian President Putin directed that payments for Russian natural gas by “unfriendly nations” be paid for in roubles, giving government officials and the central bank a week to come up with a mechanism.

The S&P 500 fell by 1.21%, the Nasdaq retreated by 1.32%, and the Dow Jones was lower by 1.30%. A sudden reversal lower by oil prices just now seems to have lifted sentiment slightly, futures on all three rising by around 0.20% in Asia.

Asia is somewhat mixed, falling initially in lock-step with Wall Street overnight, before retracing some of those losses, and in some cases, moving into positive territory. The sudden reversal in oil prices potentially assisting. The Nikkei 225 is down 0.45%, with South Korea’s Kospi 0.50% lower. In China, the Shanghai Composite is 0.55% lower, with the CSI 300 falling by 0.65%, while Hong Kong has edged to a 0.15% gain.

In regional markets, loosening Covid-19 restrictions see Singapore rallying by 0.80%, with Jakarta climbing 0.60%. Taipei is down 0.30%, but Bangkok has risen by the same, with Kuala Lumpur unchanged. Australian markets are holding in modestly positive territory, the ASX 200 and All ordinaries rising by 0.20%.

The evolution of the rouble gas payment story and the PMI releases will dominate proceedings in Europe today. Likewise, the Durable Goods and PMI data in the US will set the tone, with downside risks surrounding those releases.

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