Equities rise in Asia
Wall Street had a modest session with the Dow Jones the outperformer as investors locked in profits on Nasdaq’s big-tech stocks. The S&P 500 rose 0.30%, with the Nasdaq falling 0.40% and the Dow Jones rising 1.31%. The price action had all the hallmarks of a directionless fast-money day. All the talk of long value stocks “rotation” will likely turn out to be just that as the week goes on, talk.
Asia is trading positively today. Japan has returned from holiday, with the Nikkei jumping 1.60%, and the Kospi soaring 1.70%. Mainland stock markets have been boosted by the rise in Tencent today, and a lack of severe retaliation from Beijing. The Shanghai Composite has risen 0.60%, with the CSI 300 climbing 1.0%. Hong Kong has been boosted by Tencent and gambling stocks today, as Chinese mainlanders are allowed to return to Macau. The Hang Seng is up 2.10%, as it claims bragging rights for the region’s top performer.
Singapore’s GDP and Macau gambling have dominated the morning’s news in Asia. Singapore’s GDP shrunk by over 40% in Q2 with construction spending plunging 97%. The data itself, was as expected, and given that most construction workers have been in Covid-19 lockdown, a surprise to no one.
Singapore’s Straits Times index is rising just 0.30% along with Kuala Lumpur and Jakarta. Australia’s impressive rally continues, with the ASX 200 and All Ordinaries up 1.0%, boosted by continuing domestic stimulus hopes and a lack of noise from China.
The ASX, in particular, is testing its 200-day moving average (DMA) today at 6190.00. Without a daily close above 6200.00, however, the rally may peter out. Topping technical formations are being seen by major indices around the world still, and the risk is that we see a correction lower in equity markets as the week develops.
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