Asian equity markets mixed

China equities rise on positive US-China comms

Overnight, Wall Street limped to a modestly positive finish with the S&P 500 rising 0.19%, the Nasdaq outperforming, increasing 0.59%, and the Dow Jones finishing unchanged. Futures on all three fell as profit-taking set in, in early Asia, but have since retraced most of those losses, being down around 0.10%.

Much the same occurred across Asia, with equities markets edging lower as investors unwound some of the precious days’ gains ahead of US data this evening. The seemingly positive phone call between the US and China trade representatives has swung sentiment in Asia back into the green, as much of the region returned from a holiday yesterday.

The Nikkei 225 is down just 0.25%, while the Kospi is 0.10% lower. Elsewhere, the picture is more upbeat, with mainland China’s Shanghai Composite and CSI 300 reversing early losses to be up 0.10%. Hong Kong is flat for the day despite a further clampdown on China-tech financial operations. Singapore is 0.35% higher, with Kuala Lumpur up 0.15%, Taiwan lower by 0.50%, and Jakarta leaping 1.20% higher.

Australian markets have shrugged off a new week-long Covid-19 lockdown in the State of Victoria after private CAPEX data leapt by 6.50%. The All Ordinaries has climbed 0.35%, while the ASX 200 has risen 0.20%.

Europe will open on a cautionary note after the early price action in Asia suggested bullish investors are nervous ahead of US data. However, the positive reaction of Asia to even a hint of thawing relations between China and the US indicates any fallout in Europe will be limited.

Today’s calendar is quiet across the rest of Asia and into Europe. Things get more exciting this evening, with a busy data calendar in the US. We’ll get a look at Durable Goods, Initial Jobless Claims, PCE Prices and 2nd est. GDP Growth Rate for Q2. We are likely to see more risk being taken off the board into that data dump.

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