Asian markets higher after Wall Street gains
Asian equity markets were mostly higher today after the and closed at record highs last night. The exception is China markets, where the PBOC withdrawing liquidity and nuclear nerves have pushed and markets lower on Tuesday.
Overnight, the S&P 500 rose 0.18%, the NASDAQ jumped 0.74%, with the falling 0.25% as the rotation trade falls out of favor pre-FOMC. Futures on all three indexes rose in Asia by around 0.10%, underpinning sentiment locally.
The jumped by 1.0 % today, although the rose by only 0.17%. Speculation that the BoJ will announce an extension to their pandemic support measures until September at Friday’s policy seemed to support sentiment. However, China markets were under pressure, with the Shanghai Composite down 1.0% while the fell by 1.30%, with Hong Kong lower by 0.90%.
China and Hong Kong equity markets were under pressure in the Asian morning, even as the rest of Asia was following Wall Street higher. Two factors appeared to be at play here. Firstly, the PBOC drained a net CNY 10 bio via the repos after the long weekend.
Secondly, every major news outlet is running a story about potential problems with a French-designed nuclear power plant located in Taishan, located west of the Pearl River Delta and just 140 km from Hong Kong. There have been reports of a leak at the plant, and the Biden administration has been in contact with French and Chinese officials about the issue.
Elsewhere, rose 0.83%, with up 0.60%, with and unchanged. Australian markets were also tracking higher, the climbing 1.120% and the rising by 0.70%.
European and UK equities markets will likely open firmer, following the New York and Asia lead, with China’s travails regarded as a local issue for now.