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Tuesday, October 4, 2022

Mixed day for Asian stocks – MarketPulse

There are serious gaps in Asian equity markets this morning as China engulfs some markets, while others rise on hopes of lower oil and Ukraine talks. US markets softened on Friday as Michigan consumer confidence plummeted and investors hedged risk over the weekend. The S&P 500 fell 1.30%, the Nasdaq 2.18% and the Dow Jones 0.69%. Hopes that Ukraine-Russia talks are moving in the right direction, boosted US futures today. S&P500 and Nasdaq futures were up 0.50%, while Dow futures were up 0.25%.

Negotiating hopes still lowered oil prices today, which has pushed Japan’s Nikkei 225 0.95% higher, the other main beneficiary being perpetually optimistic in Australia. All Ordinary and the ASX 200 are climbing 1.0%, while New Zealand is back unchanged after the government cut fuel taxes.

Chinese markets fall due to Shenzhen lockdown

Elsewhere though, Asia is a sea of ​​red after China announced a complete lockdown of Shenzhen for at least a month. Following this, a procession of multinational companies announced a halt to production at facilities located in the area. Fears of further disruption in the supply chain have weighed heavily on Asian markets if the port closes, or if the lockdown extends. The development of China’s Omicron position will likely weigh more on Asian sentiment this week than the FOMC.

Mainland China sees the Shanghai Composite down 1.35% with CSI down 1.70%. Hong Kong has completely retreated as it grapples with its own virus nightmare, with Hang Seng falling by 3.75%. South Korea’s Kospi is down 0.75% and Singapore 0.70%. Taipei is down 0.60%, Kuala Lumpur is down 0.45%. Jakarta is bucking the trend as more and more investors watch commodity prices and choose Indonesia as the winner. Jakarta is 0.50% higher today. Bangkok is up 0.15%, but Manila is down 3.55% due to currency weakness, rising government debt repayments, pre-election nerves, weak Asian growth and stagnant pressures that have only increased through the pandemic.

As always, the rallies seen today in Asia and on US futures are just a headline away from disappearing. European markets dipped their toes in water on Friday and will likely do the same again today on hopes of Ukraine-Russia talks. But sentiment in European stocks will remain fragile for the foreseeable future, for reasons I don’t need to explain.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Rai is the author; not necessarily be OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for everyone. You can lose all your deposited money.

With over 30 years of FX experience – from spot/margin trading and NDFs to currency options and futures – Jeffrey Haley is OANDA’s Senior Market Analyst for Asia Pacific, covering a wide range of asset classes over a period of time and are responsible for providing relevant macro analysis. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey Bloomberg has appeared on a wide range of global news channels, including the BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia as well as major print publications including The New York Times and The Wall. Street Journal, among others. He was born in New Zealand and has an MBA from Cass Business School.

Jeffrey Haley

Jeffrey Haley

World Nation News Desk
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