The North Asian energy-importing heavyweights are booking impressive gains today as Brent crude slumped to around $100 a barrel yeterday. In contrast, Wall Street had a restrained session as hawkish FOMC Minutes push US yields higher and tempered that genetically programmed urge to by the dip. Still Wall Street did manage modest gains, thanks to decent US data elsewhere.
The S&P 500 gained 0.36%, the NASDAQ added 0.35%, while the Dow Jones rose 0.23%. US futures are slightly higher in Asia, the S&P and Dow adding 0.10%, with the NASDAQ futures rising by 0.35%, following the Asian heavyweights for a change.
In Asia, lower oil prices and a still-weak yen have propelled the Nikkei 225 1.45% higher, with South Korea’s KOSPI having leapt 2.0% higher. Mainland China markets are also rallying, but less so as Covid restriction fears permeate. Still, the Shanghai Composite has risen by 0.50%, while the CSI 300 has climbed by 0.60%. The news is not so good in Hong Kong where virus cases are accelerating, the Hang Seng has edged 0.40% lower today.
In regional markets, Taipei has had a 2.20% oil boost, with Singapore adding 0.25%. Kuala Lumpur and Jakarta are 0.15% higher, Bangkok is 0.30% higher, and Manila has unwound some of its outperformance this week, falling by 1.10%. Australian markets are still very much sticking to the script from Wall Street, with falling resource prices offsetting an impressive trade balance print today. The All Ordinaries has climbed 0.35% higher, while the ASX 200 has added 0.45%.
European markets unwound the Norwegian oil strike sell-off yesterday and may get a further boost from slumping oil prices overnight, although European natural gas prices remain the centre of focus. European markets are unlikely to replicate yesterday’s rally though but should still book a modestly positive start.