Asian markets a mix after Wall St. drops

Asian heavyweights gain on lower oil prices

Asia’s northern heavyweights are higher despite a negative Wall Street session overnight, thanks to the slump in oil prices late in the New York session. Wall Street couldn’t hold onto early gains as pre-CPI nerves and recession fears sent US equities down once again. The S&P 500 fell by 0.92%, the Nasdaq by 0.85%, and the Dow Jones by 0.62%. US futures are showing resilience in Asia though, suggesting choppy trading ahead of the US inflation data tonight. S&P futures are 0.25% higher, Dow futures are 0.15% higher, while Nasdaq futures have jumped by 0.50%.

In Asia, the slump in oil prices overnight has lifted the northern Asia heavyweights, all of whom are voracious consumers of imported energy. Japan’s Nikkei 225 has gained 0.35%, with South Korea’s Kospi rising by 0.75%. In mainland China, the Shanghai Composite is 0.35% higher, while the CSI 300 has gained 0.45%. Hong Kong has risen by 0.70%. Taipei has leapt 2.85% higher after the government activated its stock stabilisation fund today.

Elsewhere, growth-centric ASEAN has been unable to replicate those gains, following Wall Street’s overnight lead and heading south this morning. Singapore has fallen by 0.70%, with Jakarta losing 0.55%, and Kuala Lumpur falling by 0.65%. Manila continues to struggle as markets price in more aggressive tightening from the BSP and the trade balance deteriorates, retreating by 1.10% today. Bangkok has lost 0.75% today.

Australian markets are treading water after resource prices fell again overnight. The ASX 200 and All Ordinaries are ranging narrowly on each side of unchanged.

European markets conjured up a relied rally overnight, perhaps driven by Canada releasing a previously embargoed gas pipeline pump back to Russia, lifting hopes that Nord Stream 1 will start flowing again after maintenance finishes on the 21^st of July. The momentum from that trade is going to wane quickly though, and Europe will be casting a nervous glance at US inflation data this evening, and inflation data from German, France, and Spain. I expect a cautious slightly negative, opening this afternoon.

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