Asian markets are content to follow Wall Street higher
Asian markets are mostly higher today, content to follow Wall Street’s overnight rally. The Snap after-market results are tempering US futures, taking the sheen off Asia’s rallies today. The fall of oil prices overnight is also supportive of Asian markets, although weekend event risk may also be staying investors’ hands.
On Wall Street, the S&P 500 finished 0.99% higher, the Nasdaq jumped by 1.36%, with the Dow Jones rose by 0.51%. In Asia, the Snap results have seen tech companies come under some pressure, pushing US futures lower. S&P 500 futures have fallen by 0.40% lower, Nasdaq futures are off 0.65%, with Dow futures down 0.20%.
In Asia, Japan’s Nikkei 225 is 0.20% higher, but South Korea’s Kospi has fallen by 0.40%. In China, the Shanghai Composite has gained 0.35%, while the CSI 300 has climbed by 0.55%, and Hong Kong has risen by 0.60%.
Singapore is 0.70% higher in regional markets, with Taipei edging 0.15% higher. Jakarta has added 0.10%, Kuala Lumpur by 0.37%, Bangkok by 0.30%, and Manila is unchanged. Australian markets are also relatively subdued, the All Ordinaries have risen by just 0.10%, and the ASX 200 is unchanged.
European markets had a very mixed day, with a resumption of gas flows from Russia offset by the surprise 0.50% rate hike by the ECB and Italian political chaos, although given that has been the natural state of affairs since 1945, we should be used to it. The widening of German/Italian bond spreads was more troublesome, and the ECB may need to roll out that fragmentation tool sooner than later. With weekend event risk ahead and the reality of gas flows resuming at reduced rates, Italian politics, and the decade of ECB negative interest rates being over, it is hard to see European equities finishing the day on a high note.
This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.