Asian markets mixed at start of week
New York turned in a strong performance on Friday after US retail Sales unexpectedly rose by 0.70% for September, well above the 0.20% expected. US yields firmed across the curve but were ignored by equity markets as the S&P 500 rose 0.75%, the Nasdaq gained 0.50%, and the Dow Jones jumped by 1.10%. US futures are quiet in Asia thus far, easing slightly on long-covering from Friday’s close.
Asia appears to be on hold ahead of the China data dump this morning with early markets showing a mixed performance. The 0.25% fall by the Nasdaq futures this morning sees the Nikkei 225 easing by 0.40%, while the Kospi is 0.30% lower. Mainland markets finished almost unchanged last week. The PBOC comments on the risks in China’s property market being contained may give some comfort initially, but the data releases, good or bad, will dominate proceedings. Hong Kong has fallen 0.70% in early trade after soft guidance from Ali Baba, hinting that the mainland may have a soft open.
Singapore is unchanged, but Kuala Lumpur has risen by 0.55% as reopening plans gain traction and commodities, especially energy, remain firm. Jakarta, riding the same wave, is 0.15% higher as the government projects a lower than expected deficit. Taipei has risen by just 0.10% with Manila climbing 0.40%. Australian markets have also edged higher after a strong finish in New York. The ASX 200 and All Ordinaries have risen by 0.25%. With New Zealand deciding on whether to revert to level 4 restrictions in Auckland today, the NZX has fallen by 0.10%.
The China data dump at 1000SGT will dictate most of the region’s direction today although indications seem to suggest we are seeing another rotation day from North Asia to ASEAN markets, seemingly a short-term defensive play for local investors at the moment. European markets have shown little inclination to take their direction from Asia of late. Thus, no matter how Asia’s session turns out today, Europe is likely to open firmer based on the positive finish from New York and a lack of market-moving headlines over the weekend.
