Multiple Headwinds Soften Asian Stocks

Multiple Headwinds Soften Asian Stocks

Asian markets follow Wall Street and edge lower

Asian markets were mostly lower as US-Sino relations, mixed US data, and a rampaging delta-variant across the region all combine to weigh on sentiment into the weekend. Wall Street closed lower yesterday, led by technology, as bullish momentum faded against a background of regulatory noise and Capitol Hill legislative confusion.

Notably, US long-dated yields continued to retreat on a firm transitory message from Mr and Ms Yellen; Wall Street could not rally, despite a procession of decent earnings results. That suggests that markets will be vulnerable today to a weak US print as investors cast an eye to an increasingly cloudy third quarter.

The fell 0.33% while the lost 0.70%, with the recording a modest 0.15% gain on rotational flows out of tech.. A downgrade by the Bank of Japan, and Covid-19 cases sees the ’s late-week retreat continue. The has fell by 0.60%.

China’s new requirements on property developer debt disclosures, and more warnings from the US on doing business with China yesterday, have sent markets lower. The has fallen by 0.10%, with the falling 0.50%. President Biden’s comments on Hong Kong’s judiciary independence see the lower by 0.30%.

The downgrade of regional growth prospects by Goldman Sachs is weighing on other markets as well. Singapore’s data has kept the STI slightly in the green, up 0.10%, but Kuala Lumpur and Bangkok are down 0.30%, Manila is down 0.80% after the delta variant was detected there today, while Jakarta has edged 0.20% higher. In Australia, spreading inter-state virus lockdowns is muting the sentiment from another impressive set of data releases this week. The and being barely changed.

European stocks are likely to open modestly lower ahead of Eurozone data, with Europe not showing much connection with Asian markets at the moment. Assuming no upward surprises from the Eurozone inflation, an oxymoron if ever there was one, equity markets on both sides of the Atlantic will remain focused on US Retail Sales today.

Original Post

Source link

Leave a comment

Send a Comment

Your email address will not be published.

Enter text shown below: