Asia in mixed territory after Wall Street surges
Another day, another record close for Wall Street, as strong corporate earnings and subdued US yields keeps the party going. The S&P 500 rose 0.82%, the NASDAQ climbed 0.55%, while the Dow Jones finished a respectable 0.80% higher. Delta nerves have been pushed to the sidelines once again, and the US Infrastructure Bill continues to make progress, it seems.
In Asia, it was a mixed day notable for the dip-buyers in China equities. After yesterday’s “spiritual opium” comments from the government press and a new enquiry into auto semiconductors sparked a panicked sell-off in tech heavyweights, the irresistible lure of seemingly cheap China shares has buyers back once again.
The Shanghai Composite rose 0.75%, with the CSI 300 climbing 0.65%. The tail-chasing herd have lifted the Hang Seng by 1.15%. Today’s bargain is tomorrow’s expensive mistake with China at the moment, and the rebalancing between price and regulatory risk still has some way to go, I believe.
Japan’s worsening COVID-19 outlook was weighing on the Nikkei 225 today, which was 0.25% lower, but the KOSPI leapt by 1.15%, with Taipei climbing 0.40%. Singapore rose by 1.0%, boosted by excellent results from banking heavyweights UOBH and OCBC.
The Singapore banking sector has long been a favorite, with well run, well-capitalized and digitally savvy incumbents that are well-placed to benefit from both Singapore and the region’s recovery, even if it is slower than hoped. A Singapore Airlines (OTC:SINGY) A380 filmed lifting off from desert storage to return home sees the share price 1.40% higher today in the hopes of better times ahead.
Elsewhere, COVID-19 and political turmoil see Kuala Lumpur fall 0.80%, with Malaysia one of my fragile four. Until one of those things changes materially to the positive side, it shall remain there.
Jakarta rose by 0.30%, while Bangkok easing by 0.40%, with Manilla climbing 0.40% and quietly outperforming this week.
Australian markets followed Wall Street higher, as is their want, although the ongoing COVID-19 situation is tempering the bulls. The ASX 200 and All Ordinaries were finishing the day 0.35% higher.
European stock markets should take their cues once again from Wall Street to open higher.