Asian markets on hold with Fed on deck

Asian equities trade sideways ahead of the FOMC

New York markets had another choppy, but ultimately directionless session overnight. The main indexes crawled to a positive close after the US 10-year yield slid back below 3.0%, having climbed above it earlier in the session. The S&P 500 rose 0.48%, the Nasdaq rose 0.22%, and the Dow Jones finished just 0.17% higher. In Asia, futures on all three have added between 0.10% and 0.15% in subdued trading.

A raft of holidays across Asia continues to mute volatility and volumes. Japan, Mainland China, Malaysia, Indonesia, and Thailand are all closed. South Korea’s Kospi has edged 0.23% lower as markets continue to process multi-year highs in inflation and a China slowdown.

Singapore is down 0.10%, with Taipei climbing 0.25%, and Manila falling by 0.28%. Australian markets are equally quiet, although decent data today keeps the faster RBA rate hike story alive, weighing on sentiment, as are ever-tightening covid-zero restrictions in China. The All Ordinaries has fallen by 0.25%, while the ASX 200 has eased 0.05% lower.

European markets are likely to start slowly as well, with the FOMC the one ring to rule them all. Continuing chatter surrounding an EU embargo on Russian oil, and the geopolitical situation in the East will keep recession fears front and centre, limiting gains ahead of the FOMC announcement.

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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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