Having suffered yesterday, Asian equities are mainly green today, with yesterday’s unloved markets in favour today. That suggests that choppy range trading and tail-chasing continue to rule the roost as equity markets, ex the FOMO-gnomes of Wall Street, search for a directional answer to sink its teeth into. Wall Street went nowhere overnight, as the US 10-year note auction passing without incident.
Overnight, some long-covering hit Wall Street on a slow news day, with the S&P 500 unchanged, the NASDAQ losing 0.36%, and the Dow Jones easing by 0.16%. In Asia, the range-trade theme continues, with futures on all three creeping higher by just over 0.05% in quiet trading.
In Asia, the Nikkei 225 and KOSPI have jumped 1.10% higher, having been unloved yesterday. China markets have received a temporary Balance of Trade scare, with the Shanghai Composite retreating to unchanged. The CSI 300 has shaved some of its earlier gains but remains 0.55% higher on the day. Hong Kong has shrugged off the China data, rising 1.15% as Alibaba (NYSE:BABA) continues its post-fine rally.
Regionally, Singapore has risen 0.35%, while Kuala Lumpur has fallen by the same. Taiwan is 0.760% higher, while Jakarta has lost 0.55%. Australian markets remain stuck in neutral after the non-descript New York session, with both the ASX 200 and All Ordinaries unchanged.
At the periphery, the China trade data is positive for the region. Imports were exploding across almost every sub-sector and rising from the Asian area as a whole. Even if the China export machine is slowing, and the last year was exceptional for several obvious reasons, if domestic consumption is driving imports, that recovery should earn China a pass mark.
Looking at the post-release price action, investors seem more concerned with US Inflation, and the China data dump on Friday. I expect the too and for price action to continue through the rest of the session and into Europe.