Asian markets seeing red before weekend

Asian equities sold heavily ahead of the weekend

Although Asia has been quiet on the headline front today, the region clearly doesn’t want to carry heavy long exposures into the weekend, leading to Asian markets being sold heavily today as investors trim risk exposure. Overnight, US markets edged lower after 40-year highs in inflation raised the prospect of more Fed hikes than expected. The S&P 500 fell by 0.43%, the Nasdaq lost 0.95%, and the Dow Jones edged 0.35% lower. US futures are trading heavily today as well, S&P 500 and Dow futures losing around 0.45%, while the Nasdaq futures have retreated sharply by 0.85%.

In Asia, it is a sea of red with major markets being sold heavily. The Nikkei 225 has dumped 2.65%, with South Korea’s Kospi losing 1.10%. In China, the Shanghai Composite has fallen 2.05%, with the CSI 300 2.40% underwater. Hong Kong, having watched China ADRs on tech majors plummet in New York is having a miserable day, the Hang Seng has plummeted by 3.75%.

In regional Asia, Singapore had fallen just 0.25%, while Kuala Lumpur is 0.90% lower, and Jakarta has fallen by 0.55%. Taipei is down 0.95% with Bangkok 0.45% lower and Manila losing 0.95%. Downunder, Australian markets are also on the defensive ahead of the weekend, the ASX 200 and All Ordinaries falling by 1.10%.

European markets resumed their slide overnight after a one-day rally. Non-conclusive Ukraine-Russia talks and an ECB that was erring to the hawkish side saw Europe give back all its previous day’s gains. Short of a positive headline coming out of Eastern Europe this morning, it is hard to see why that sell-off will not continue this afternoon. The ever-optimistic dip-buyers of New York are also likely to struggle to find reasons to be long equities into the weekend.

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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

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