Asian equities rally with Wall Street
Wall Street had an impressive session on Friday, rallying powerfully once again as markets priced in a US recession, meaning US interest rate hikes would end sooner than expected. That perverse logic saw the S&P 500 jump 3.07%, the Nasdaq rally 3.34% higher, while the Dow Jones gained 2.70%. Much the same pattern is playing out in US futures in Asia. S&P 500 have added 0.35%, Nasdaq futures have jumped by 0.85%, while Dow futures have gained 0.10% as the FOMO gnomes of Wall Street go hard on growth over value.
That sees Asian stock markets coat-tailing New York higher today. The Nikkei 225 has risen by 1.20%, with South Korea’s Kospi rallying by 1.80%. Mainland China’s Shanghai Composite is 0.90% higher, and the CSI 300 has risen by 1.25%. China stocks benefiting additionally from a large CNY 90 billion liquidity injection ahead of the quarter-end vis the 7-day reverse repo. The ever-effervescent Hong Kong market has seen the Hang Seng making an outsized 3.30% gain today.
Regionally, Singapore is up by 0.70%, the tech-centric Taipei by 1.90%, Kuala Lumpur by 0.25%, and Jakarta has fallen by 0.75%. Bangkok has added 0.75%, and Manila is down slightly by 0.15%. Australian markets are slavishly following the S&P 500 and Nasdaq as well, very much their want of late. The All Ordinaries have rallied by 1.90%, with the ASX 200 rallying by 1.95%.
The G-7 meeting probably has potentially a much greater bearing on Europe right now than other areas, thanks to the Ukraine/Russia war. European markets piled into the buy-side with the US on Friday after a very mixed week, and with the G-7 springing no surprises thus far, we can expect a positive opening from European markets this afternoon.
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