New York rally lifts Asian equities

Markets higher after US inflation report

Wall Street ignored weak JP Morgan Q1 results and instead continued to focus on the peak US inflation theme overnight, sending US equities sharply higher. The S&P 500 rose 1.12%, the Nasdaq leapt 2.03% higher, and the Dow Jones climbed by 1.05%. In Asia, futures on all three indexes have booked solid gains. S&P 500 and Dow futures rising by 0.20%, while Nasdaq futures have risen by 0.45%.

That has led to a broad rally in Asia ahead of the Easter holidays, led by the North Asia heavyweights. Japan’s Nikkei 225 is 1.15% higher, but South Korea’s Kospi has only gained 0.10% after the Bank of Korea unexpectedly lifted interest rates. China markets are also having a good day after spending this week mysteriously rallying in the afternoon, which I put down to buying from China’s “national team.” Markets there are expecting an imminent RRR cut which is overshadowing the omicron challenges for now. The Shanghai Composite has risen by 0.70%, the CSI 300 by 0.75%, and the Hang Seng by 0.45%.

In regional markets, Singapore has climbed by just 0.15% after the MAS tightened monetary policy, while Taipei is down 0.10% as Taiwan companies face production challenges in mainland China due to virus restrictions. Kuala Lumpur is 0.25% higher, Jakarta is down 0.20% while it is a market holiday in Bangkok and Manila. Australian markets are also higher today, helped by the strong Wall Street session and higher oil prices. Activity is slightly muted as it enters a four-day break. The ASX 200 and All Ordinaries have climbed by 0.70%.

European markets face a challenging session with plenty of two-way risk around the ECB policy meeting. Parts of Europe are already on holiday today, and with the Easter break ahead, activity is likely to fall after the ECB results are out. European traders, facing a multi-day break with plenty of event risk, are unlikely to load up on risk.

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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