Asian markets regain confidence
US futures moved higher in Asia yesterday and continued gaining through European time as a lack of really negative headlines allowed the buy-the-dippers to dip their toes in the market. That also helped European equities sage a decent recovery as well, with markets ignoring the shock result in the French parliamentary elections. S&P, Nasdaq and Dow futures rose around 1.0% overnight, and all three have added another 0.55% this morning.
With US index futures maintaining their gains into today’s session, some confidence has returned to Asian markets, which are mostly higher today. The speculative FOMO herd has sent the Nikkei 225 1.90% higher, with South Korea’s Kospi adding 0.45%. In mainland China, both the Shanghai Composite and CSI lost ground early doors, after suspiciously artificial gains yesterday. Those losses have once again reversed, with the Shanghai Composite now 0.05% higher, and the CSI 300 edging 0.15% higher. Hong Kong’s Hang Seng has jumped by 1.30%, helped perhaps by signals from Evergrande of a timetable for debt repayments and relisting of its shares.
In other markets, Singapore has climbed by 0.75%, with Taipei jumping 1.85% higher, Kuala Lumpur and Jakarta have gained 0.45%, Bangkok 0.25%, but Manila has fallen by 0.45%. Australian markets have wasted no time in reversing yesterday’s losses, thanks to firm US futures. The ASX 200 and All Ordinaries are 1.45% higher today.
Assuming the news ticker stays quiet, and with little data out this afternoon, European markets should continue recouping some recent losses, and as long as the US housing data holds steady, I can see Wall Street maintaining its recent gains as well.
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