Asia equities are mostly higher

Ukraine talks spark equity stampede

The first sign of good news, no matter how tenuous, from the Ukraine-Russia talks resulted in a mass stampede into equities with the FOMO gnomes pricing in “peak-Ukraine.” European markets soared and the rally continued into New York, where excellent data and lower US yields boosted sentiment. The S&P 500 closed 1.23% higher, the Nasdaq jumped by 1.84%, and the Dow Jones finished 0.97% higher. Some short-term long covering sees futures on all three indexes eased around 0.20% in Asia.

 

Asian markets, as desperate for any good news from the Eastern front as anyone else, have reacted by rallying strongly today. The exception is Japan where the Nikkei 225 has slumped by 1.27%. Part of the reason could be the yen rally overnight, but I believe that financial year-end flows ahead of tomorrow are distorting trading in Tokyo today.

 

Elsewhere, the news is positive. Mainland China’s Shanghai Composite has jumped 1.50% higher, while the CSI 300 has soared by 2.15%. Hong Kong has rallied by 1.50%. South Korea’s Kospi has posted a much more sedate gain of 0.25%, perhaps with one eye on Tokyo and heavyweight local data due tomorrow.

 

Singapore is unchanged, pausing for breath after a few days of gains as domestic virus curbs were relaxed. Kuala Lumpur is 0.25% higher, with Jakarta climbing 0.35%, while Taipei has leapt 1.20% higher. Bangkok has gained 0.65% with Manila rising 0.20%. There is a defiant North Asia heavyweight/ ASEAN split today, perhaps reflective of improved risk sentiment internationally. With that in mind, India’s Sensex has also posted a healthy 1.0% gain in early trading.

 

European markets posted a banner day of gains yesterday on Ukraine hopes. A dig into the fine print, and a closer look at the reality of the Russian comments, may temper that enthusiasm 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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