Asian markets in calm waters

Asian equities hover between slightly mixed and unchanged

Asian equities are off to a quiet start this week, with little in the way of concrete drivers from the weekend to drive price action, Australia, New Zealand, and Hong Kong markets closed, as well as the UK this afternoon. With volumes holiday-thinned, the Nikkei 225 is 0.25% lower, while the Kospi is down 0.10%.

Mainland China is slightly in the green after positive headlines from Evergrande and the PBOC over the weekend. The PBOC announced on Saturday that it would safeguard the legal rights of home buyers and provide greater support for the real economy. The targeted stimulus is a theme in recent times from China, as opposed to previous stimulus strategies. Reuters also reported that Evergrande had made progress restarting home construction and that its chairman said it would deliver 39,000 units in December. However, these positive developments have been tempered by rising virus cases, leaving the Chinese markets drifting. The Shanghai Composite is 0.18% higher, and the CSI 300 has eked out a 0.05% gain.

Regionally, Singapore is unchanged while Kuala Lumpur has gained 0.65% and Bangkok 0.20%. Taipei is 0.86% higher, with Manila down 0.10% and Jakarta up 0.15%. US futures have restarted trading today and are having a quiet session as well.  Nasdaq futures gained 0.25%, S&P 500 futures 0.10%, while Dow futures are unchanged. It looks like only bored Minnesota dentists are playing in the space today.

Short of a headline surprise, I expect Europe to follow much the same pattern this afternoon.

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