Asian markets mixed

Asian equities a real mixed bag of lollies today

US markets took a breather overnight after tying themselves up in knots for the last week. The S&P 500 closed just 0.07% lower, the Nasdaq was almost unchanged, edging down 0.03%, while the Dow Jones rose by 0.27%. In Asia, US futures are mixed again. S&P 500 and Dow futures have slipped by 0.15%, while Nasdaq futures have gained 0.10%. Personal Income and Expenditure data, and month and quarter-end rebalancing flows are likely to make for a messy Wall Street session this evening.

The inconclusive Wall Street close has left Asia to its own devices today, leading to a very messy mixed session so far, and month and quarter-end flows could be playing their part, along with local data releases. Weak industrial production data and rising covid infections in Tokyo see the Nikkei 225 down by 0.90% today. In South Korea, the Kospi has suffered from weak MoM Industrial Production data, falling by 0.60%.

In mainland China, markets had reacted negatively to President Xi’s reiteration of covid-zero yesterday, but early selling was reversed after strong PMI data this morning. The Shanghai Composite has rallied by 1.15%, with the CSI 300 jumping 1.35% higher. Hong Kong’s Hang Seng is up just 0.50% in comparison.

In regional markets, Singapore is down 0.40%, with Taipei slumping by 2.05%. Kuala Lumpur has risen by 0.55%, Jakarta by 0.35% and Bangkok by 0.15%. Manila has fallen by 0.40% after the BSP Governor raised the prospect of harsher rate hikes. China Iron ore futures are now down 7.20% as I write, and that seems to be weighing on Australian markets. The All Ordinaries and ASX 200 have fallen by 0.75%.

European markets fell heavily overnight as a hawkish Lagarde and increasing recession fears eroded confidence. Nothing has happened overnight to materially change that outlook and they are set for another weak opening this afternoon. US markets will be a turkey shoot over US data and month and quarter-end rebalancing flows.

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