Equities mixed in Asia

Asian markets drifting

Asia has plenty of risk points to deconstruct today, some positive, some not so, and it is hardly surprising that regional equities are trading each side of unchanged across the region. On Friday, Wall Street finished mixed as the yield curve continued flattening. The S&P 500 edged 0.14% lower, with tech outperforming and lifting the Nasdaq by 0.40%. The possibility of a faster Fed taper weighed on the Dow Jones which fell by 0.75%. In Asia, US futures are following China, all three indices adding 0.30% in subdued trading.

In Japan, the Nikkei 225 is quiet ahead of a public holiday tomorrow and government budget announcements, the Nikkei 225 creeping 0.05% lower. The Kospi has surged, thanks to a 5.0% surge by Samsung Electronics. China markets have risen as the PBOC signals it may have seen enough yuan strengthening for now and adding liquidity today, as well as leaving the one and five-year LPR’s unchanged. The Shanghai Composite has risen by 0.65%, with the CSI 300 climbing by 0.30%. In Hong Kong, a series of small fines levied on China tech giants over the weekend has pushed the Hang Seng lower by 0.35%.

The cautious mood is prevalent across ASEAN and Australia, especially after the resource and manufacturing-centric Dow Jones fell heavily on Wall Street on Friday. Singapore has risen by 0.25% with Taipei and Kuala Lumpur unchanged. Jakarta is 0.20% lower while Bangkok has dropped by 0.50% and Manila by 0.25%. Soft commodity prices are weighing on Australia today, with the All Ordinaries falling by 0.35%, and the ASX 200 tumbling by 0.50%.

With anti-lockdown riots sweeping Europe over the weekend, along with increasing restrictions and surging cases, Eurozone equities are likely to open lower this afternoon. Fears of a fourth wave in Europe eroding the global recovery have played their part in Asia’s cautious mood today, and that reality will definitely weigh on the Europeans themselves this afternoon.

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