A mixed day for Asian equities

Nasdaq slides, Asia in mixed mood

Overnight, a procession of poor US data delivered another kidney punch to US equities, with the tech-heavy Nasdaq bearing the brunt once again, as the more value-heavy Dow Jones remained steady. The S&P 500 fell by 0.80% as the Nasdaq slumped by 2.35%, while the Dow Jones managed a tiny 0.16% gain. In Asia, US index futures are seeing their usual counter-trend move. S&P 500 futures are 0.65% higher, Nasdaq futures have jumped by 0.95%, and Dow futures have gained 0.40%.

Asian markets are a mixed bag but appear to be focussing on the overnight moves on Wall Street being counterbalanced by mainland China equities rising modestly. The latter is a big surprise as Beijing Covid-19 cases climb and the port city of Tianjin nearby locks down its city centre. It wouldn’t surprise me if China’s “national team” was taking advantage of a relatively quiet day to buy.

Japan’s Nikkei 225 gave up some early gains and is now down by 0.10% for the day. South Korea’s Kospi though, has ignored the missile tests from North Korea to post a 0.85% gain. In a similar vein, the Nasdaq futures rally has lifted Taipei 1.05% higher.

Mainland China’s Shanghai Composite has risen by 0.60%, with the CSI 300 edging 0.15% higher. Hong Kong has climbed by 0.70%. Singapore though has fallen by 0.20%, with Kuala Lumpur rising by 0.20%. Jakarta has fallen by 0.45%, while Bangkok has climbed by 0.70%, with Manila adding 0.45%. Australian markets are also cheering the US futures rally, the ASX 200 rallying by 0.65%, and the All Ordinaries gaining 0.55%.

Asia’s mixed bag is unlikely to give European markets many clues. The underperformance by more value-orientated markets in Asia today may translate to early weakness, but I feel that the US refusal to rule out oil export restrictions will weigh more heavily. At the frontlines of the economic war with Russia, any sort of threat to Europe’s tenuous energy security, either by supplies or higher prices, won’t be good news for European equities. UK markets could be in for a frisky day as the No.10 “party gate” report comes out. I’m not sure whether BoJo going would be bullish or bearish for UK equities though.

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.

Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific, from 2016 to August 2022
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley was 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 and Channel News Asia as well as in leading print publications such as 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

Latest posts by Jeffrey Halley (see all)