A mixed day for Asian equities

Asia mixed after FOMC Minutes

Wall Street bounced overnight as the FOMC Minutes were less hawkish than feared. The relief rally saw the S&P 500 rise by 0.95%, the Nasdaq jump 1.51% higher, while the Dow Jones added 0.60%. In Asia, we are seeing the usual trend move from the main session with US futures easing slightly. S&P futures are 0.15% lower, Nasdaq futures have fallen by 0.40%, and Dow futures are unchanged.

Once again, moves in the US overnight have led to an uneven response by Asian stock markets. Chinese Premier Li’s comments about the domestic economy spooked Asian markets, with mainland stocks dropping initially. News that the Port of Shanghai is back to 95% operability seems to have lifted spirits in China, or maybe it is the “national team” buying, with various exhortations to banks to lend to small businesses also lifting sentiment. The Shanghai Composite and CSI 300 are 0.65%, but Hong Kong has fallen by 1.60%, making it a very mainland-centric rally.

The mixed picture continues elsewhere, with Japan’s Nikkei 225 edging 0.25% lower, while South Korea’s Kospi has edged 0.20% higher. Taipei is down 0.30%, but Singapore has gained 0.90% today as local investors piled into banking and property heavyweights. Kuala Lumpur is just 0.15% higher, with Bangkok climbing 0.55% and Manila adding 0.25%. Australian markets are mixed. The All Ordinaries has fallen by 0.30%, while the ASX 200 is unchanged.

European markets face a muted opening this afternoon with quite a few holidays around and not much happening in the Asian session. UK markets will be waiting for the details to be released around the government’s windfall tax on energy companies.

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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