Dip Buyers Hunt For China Equities

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Asia in mixed territory after Wall Street surged

Another day, another record high for Wall Street, as strong corporate earnings and low U.S. yields support the party. The S&P 500 rose 0.82%, the Nasdaq climbed 0.55%, while the Dow Jones finished a respectable 0.80% higher. Delta nerves have once again been pushed to the brink, and the U.S. Infrastructure Project continues to progress, it seems.

In Asia, it was a mixed day notable for the buyers in Chinese stocks. After yesterday’s “spiritual opium” from the government press and a new investigation into automatic semiconductors sparked a panicked sale of ie heavy-duty heavyweights, the irresistible allure of seemingly cheap Chinese stocks brought back buyers. The Shanghai Composite rose 0.75%, with the CSI 300 climbing 0.65%. The tail-hunting herd raised the Hang Seng by 1.15%. Today’s bargaining is tomorrow a costly mistake with China at the moment, and the rebalancing between price and regulatory risk still has some way to go, I believe.

Japan’s deteriorating outlook Covid-19 weighs today on the Nikkei 225, which is 0.25% lower, but the Kospi jumped 1.15%, with Taipei climbing 0.40%. Singapore grew by 1.0%, boosted by excellent results from bank heavyweights UOB and OCBC. The Singapore banking sector has long been popular, with well-managed, well-capitalized and digitally experienced employees who are well placed to benefit from Singapore and the region’s recovery, even if it is slower than expected. Filmed A380 by Singapore Airlines filmed away from desert storage to return home sees the stock price 1.40% higher today hoping for better times ahead.

Elsewhere, Covid-19 and political turmoil see Kuala Lumpur decline 0.80%, with Malaysia one of my delicate four. Until one of those things changes materially to the positive side, it will stay there. Jakarta rose 0.30%, while Bangkok relaxed 0.40%, with Manila climbing 0.40% and quietly outperforming this week. Australian markets followed Wall Street higher, as did their desire, although Covid-19’s continued situation moderates the bulls. The ASX 200 and All Ordinary ended the day 0.35% higher.

European stock markets need to re-point from Wall Street to open higher soon.

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