Asian equity heavyweights edge lower

Shanghai lockdown weighs on Asian markets

With some exceptions, Asian equities are edging lower today, mostly driven by the rolling Shanghai covid lockdowns. US equities finished slightly higher on Friday, despite a rise in US yields, but futures on the S&P500, Nasdaq and Dow Jones have eased by around 0.25% this morning in sympathy.

 

The Nikkei 225 is down 0.35%, with the South Korean Kospi just 0.10% higher. Mainland China equities have retraced early losses, but remain in the red. The Shanghai Composite is 0.10% lower, while the CSI 300 has fallen by 0.65%. Hong Kong has climbed by 1.10%.

 

Across regional markets, Singapore is just 0.20% higher, while Jakarta is rising IPO fever, climbing by 0.45%, Kuala Lumpur has eased by 0.20%, while Taipei, with high beta to China lockdowns, has slumped by 1.25%. Bangkok is 0.35% higher. Australian markets have followed Friday’s price action in New York, the ASX 200 and All Ordinaries rising by 0.30%.

 

The negativity initially seen in Asia as China’s nerves increased from the Shanghai lockdowns, has been partially dispelled by the resulting fall in oil prices today. Ironically lower for the same reason. With a light calendar, Asia seems content at the moment to wait and see how the week evolves elsewhere, especially with so much tier-1 data due at the end of the week. A worsening Covid-19 situation in China, and wider restrictions, would be a serious headwind for Asian equities as a whole.

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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