Asian markets follow Wall Street with losses
Wall Street finished the week on a sour note, with all three major indices closing lower in what was when all said and done, a bull-market correction in a slow week. We could be in for much the same this week ahead of a mouth-watering last week of the month and quarter. The S&P 500 closed 0.77% lower, as did the Dow Jones, while the Nasdaq retreated by 0.87% after Apple lost an App Store case. In the spirit of noisy range-trading, futures on all three have jumped in Asia on no news at all, defying the negativity in Asia. S&P 500 and Dow futures are 0.30% higher, with Nasdaq futures up 0.12%.
The Nikkei 225 has unwound early losses in Asia and is now down just 0.05% as stimulus hopes and bullish retail investor momentum rule the roost. Similarly, the Kospi is now down just 0.05%. Typhoons and the Ant Financial break-up story are weighing on China markets today, notably the Hang Seng where Ali Baba is listed. The Hang Seng has plunged 1.75%, while the Shanghai Composite is flat, and the CSI 300 is 0.40% lower.
Singapore has slumped by 0.85%, with Taipei 0.25% lower and Kuala Lumpur falling 0.70%, despite the government and opposition tentatively agreeing on party reform measures over the weekend. Bangkok is unchanged, with Jakarta falling 0.55% and Manila lower by 0.15%.
Australian markets are bucking the trend as M&A fever saw a higher offer for an attempted takeover of Sydney Airport today. The ASX 200 and All Ordinaries are 0.25% higher.
With a lack of strong directional drivers, Hong Kong aside, the rally in US index futures has taken the edge of early losses in Asia. Asian markets ex-Hong Kong are likely to continue to claw back earlier losses as nerves subside. I expect Europe to open flat this afternoon.
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.