Asian markets rise as Pelosi crisis eases
The further from Asia Nancy Pelosi goes, the more supportive of local equities it becomes, it seems, as Asian markets draw a collective sigh of relief and climb into the green today. China’s military exercises around Taiwan seem to be getting the “one and done” treatment. That followed a mixed session on Wall Street overnight, which could only be described as noisily sideways. Asian markets are also likely to react positively to another slump in oil futures overnight, even as Saudi Arabia raises its crude prices to Asian buyers.
On Wall Street overnight, the S&P 500 finished just 0.08% lower, while the Nasdaq climbed by 0.41%, and the Dow Jones eased 0.26% lower: an inconclusive session. US futures in Asia are on the move higher, though, as China nerves abate. S&P 500 and Dow futures have risen by 0.25%, while Nasdaq futures have gained 0.35%.
In Asian markets, the Nikkei 225 has climbed 0.75% higher today, with South Korea’s Kospi rallying by 0.80%. Taipei is experiencing an inverse-Pelosi rally of impressive proportions, the TAIEX leaping higher by 1.85%.
Things are more sedate in mainland China, where the Shanghai Composite, CSI 300 and the Hang Seng are almost unchanged. Singapore has added 0.25%, while Kuala Lumpur has fallen by 0.50%, and Jakarta is 0.20% higher. Bangkok is unchanged, with Manila easing 0.25% after higher inflation data.
Australian markets have been content to track US index futures higher. The ASX 200 and All Ordinaries gaining 0.40%, while New Zealand, with the All Blacks Springboks rugby test tomorrow consuming mental capacity, is unchanged.
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With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is 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, Channel News Asia as well as in leading print publications including 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.
