Asian equities are mostly higher | Oanda

Forex: GBP/USD. The Support Has Been Rejected 3 Times. Uptrend!

Asia markets ex-China show gains

US equities rallied strongly overnight as US retail sales, industrial production, and manufacturing outperformed, while hawkish comments from Powell and former Chair Bernanke were ignored. The S&P 500 shot higher by 2.02%, the Nasdaq leapt 2.76%, and the Dow Jones gained 1.35%. In Asia, US futures have eased as short-term specs have cashed out. Nasdaq futures are down by 0.40%, with S&P 500 and Dow futures easing by 0.20%.


The overnight rally sees most of the Asia-Pacific trading in the green today, although the retreat lower by US futures this morning has limited the gains. Another headwind has been China, which has been unable to shake off the weak house price data this morning, leaving it in the red. The Shanghai Composite has fallen by 0.37%, the CSI 300 is down by 0.65%, while Hong Kong’s Hang Seng has edged 0.35% lower. That comes despite an easing of Shanghai restrictions and very supportive tech comments by the vice-premier. My days are filled with people asking me is this the low of China stocks (especially tech), it’s so cheap, should I buy? The price action today suggests that more patience is required.


Elsewhere though, Asia is recording modest gains. Japan’s Nikkei 225 is 0.75% higher, with South Korea’s Kospi up just 0.10%. Taipei has jumped 1.40% higher, while Singapore has gained 0.75%. Kuala Lumpur has risen by 0.40%, with Jakarta adding 0.65%, Manila by 1.25%, with Bangkok unchanged. Australian markets have also followed Wall Street higher, the ASX 200 rising by 0.90%, and the All Ordinaries by 0.80%.


European markets are likely to take heart over the EU’s advice on natural gas payments to Russia, lessening the odds of interrupted supplies, for now, having booked large gains yesterday. Falling oil prices should also soothe nerves. New York markets will depend on whether the street wants to continue with the bear market rally, or not.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Forex: GBP/USD. The Support Has Been Rejected 3 Times. Uptrend!

Jeffrey Halley

With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia as well as in leading print publications including the New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.