Asian equities rise

Biden budget lifts Asian equity markets

Asian equity markets are almost all higher today, with Wall Street’s neutral finish offset by reports that the Biden budget tonight will contain some serious spending, some of which will land in the region. Biden’s budget envisages a USD1.8 trillion deficit next year, after tax rises.

The S&P 500 rose 0.12%, while the Nasdaq was unchanged. The Dow Jones caught a cyclical tailwind once again, increasing 0.40%. Index futures on all three have risen strongly in Asian trading on the same fiscal tailwinds; Dow Jones futures are 0.50% higher, while the Nasdaq and S&P futures are up 0.35%.


Japan’s Nikkei 225 has leapt higher by 2.20% as the BoJ is apparently considering extending pandemic support measures as the country grapples with its latest virus wave. The Kospi has risen by 0.70%, with Taipei rising by 1.30%.


The PBOC fixing of the yuan at a two-year high this morning, and its indications that it has no real issue with further appreciation, has dampened spirits in mainland China. Nevertheless, both the Shanghai Composite and CSI 300 are still 0.02% in the green. The strong IPO of JD. Com Logistics today has lifted the Hang Seng, which is 0.60% higher.


Regionally, Singapore is 0.80% higher, with Bangkok climbing 0.95% and Jakarta by 0.60%, while Manila has fallen 1.0%. Kuala Lumpur has also retreated by 0.60% as its latest Covid-19 wave continues to increase in seriousness, raising fears that Malaysia’s tepid domestic recovery will seriously falter. Australia shows no such nerves regarding Victoria, with another good night for commodities and potential US fiscal largesse lifting the ASX 200 and All Ordinaries by 1.10%.


Europe should still open higher today, although it does not have quite the same beta to US government spending that Asia does. New York should also initially move higher again, but with plenty of data and the US budget, later on, how it finishes the week will depend on whether those inflation genies reappear.

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)