Asian Equities Mixed After US Retreat

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New York City returned from vacation in a gloomy mood overnight as data from U.S. non-farm payrolls raised fears that the U.S. recovery was running out. With the U.S. debt ceiling and the legal giant infrastructure bill coming later in the month, those concerns could be founded. There are many possible banana skins this month, including a FOMC meeting.

U.S. markets turned to the perceived safety of high-tech overnight, which pushed the S&P 500 and Dow Jones lower, while the Nasdaq held steady. The S&P 500 fell 0.34%, the Nasdaq finished just 0.07% higher, and the Dow Jones retreated 0.76%, with growth and value hitting. U.S. index futures held a modest return today, growing by 0.10%.

In Asia, Wall Street’s uninspired performance and falling commodity prices weigh on Asian markets. The exception is Japan and China, where stimulating hopes live and preserve the music. That sees the Nikkei 225 rise 0.70% today, even as the Kospi falls 0.50%. In China, the Shanghai Composite is 0.10% higher, while the CSI 300 rose 0.30%, with the Hang Seng flat. Chinese markets have returned most of their early gains, so it could be that New York’s malaise has a late impact after China impressively rallied this week.

Singapore retreated 0.70%, with Taipei 0.30% lower. Kuala Lumpur managed to reserve 0.30% gain, but Jakarta fell by 0.25%. Negative New York lead and low sudden commodity prices weigh on Australian markets. The ASX 200 and All Ordinary are 0.30% lower.

With sentiment shifting back and forth during the day now, the noise in Asia is unlikely to weigh on European markets, which I expect to open modestly higher this afternoon, after which there was, despite the noise, only a modestly corrected US session.

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