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.

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.