New York had a mixed session overnight. Energy and financial sectors suffered as oil prices fell and the US yield curve inversions continued. Technology did well after Tesla announced a stock split and Apple’s multi-day rally continued, despite the slowing production of some iPhone models. The S&P 500 rose by 0.71%, the Nasdaq jumped by 1.31%, but the Dow Jones struggled, slipping by 0.27%. Futures on all three are steady in Asia.
In Asia, markets are erring to the positive side with some notable exceptions. The slump in oil prices and other commodities overnight is an immediate tailwind to most of Asia ex Malaysia and Indonesia. A weaker yen, and a BOJ capping 10-year JGB yields, has boosted Japan where the Nikkei has risen by 0.62% today. South Korea’s Kospi is up by 0.28%.
China markets extend losses, Hong Kong rises
Mainland China markets are lower again though, although not nearly as badly as the mauling they suffered yesterday. A tightening Shanghai lockdown is the culprit, sending the Shanghai Composite lower by 0.45%, and the CSI 300 down 0.40%. Hong Kong has bucked the trend once again as the government hints at loosening virus restrictions, and with a good showing by tech overnight. The Hang Seng is 0.50% higher.
In regional markets, Singapore has edged 0.25% lower, led by the big banks. Resource-centric Kuala Lumpur and Jakarta are 1.00% lower and 0.10% lower respectively. Taipei has climbed by 0.50%, with Bangkok up 0.45% and Manila easing by 0.50%. In Australia, markets are enjoying a good day as they price in fuel tax cuts and a budget full of pre-election goodies. The ASX 200 and All Ordinaries are 0.75% higher.
Probably the biggest risk facing European equities today will be if Ukrainian and Russian negotiators make progress on a peace deal. In that scenario, European equities should book some material gains.
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