Asia equities remain under pressure

Higher yields weigh on equities

Overnight, US markets took fright as US long-dated yields shot higher as inflation nerves grew on Wall Street. The S&P 500 fell 1.68%, the Nasdaq slumped by 2.18%, and the Dow Jones retreated by 1.17%. In Asia, the sell-off continues, with US futures on all three indexes down over 0.40%.

Asian markets have responded in kind, mostly moving lower despite oil concerns easing. Fears around China’s growth and a more hawkish Fed continue to give regional markets a strong headwind. Japan’s Nikkei 225 has fallen by 1.60%, with South Korea’s Kospi 1.10% lower, with Taipei easing by 0.30%.

Chinese markets attempted to follow the ADR rally overnight as Shanghai restrictions were partially eased and the government approved new online games, boosting local tech. Momentum has quickly waned as the small print of Shanghai’s apparent easing is digested, and US futures continue to fall. China markets have fallen into the red with the Shanghai Composite down 0.65%, and the CSI 300 down by 0.35%. Hong Kong has fallen by 0.55%.

Singapore is 0.90% lower ahead of an expected MAS tightening on Thursday. Kuala Lumpur is down 0.20%, and Jakarta is 0.10% lower. Bangkok has fallen 0.35% and Manila has lost 0.95%. Falling oil prices and soft US markets have seen resources lead Australia lower. The ASX 200 and All Ordinaries fell by 0.55%.

European equity markets will find little solace in the overnight price action and will likely head lower at the open. Sky-high German inflation data will also erode sentiment as ECB tightening fears rise. Perhaps the most important thing to watch for is unconfirmed allegations that Russia has used a chemical weapon in Mariupol. This story has been circulating widely in Asia today across multiple international news outlets. If confirmed as true, European equities will surely come under pressure again as the EU will be forced to ratchet sanctions, potentially oil this time, as a response.

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 Visit 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)