Free Trial

Ending January On A Weaker Note

EQUITIES

The regional tone to Asia Pac equities is a weaker one for Tuesday's session. The weaker lead from Wall St through Monday's session didn't help, while China/HK sentiment didn't get a lift from better PMI outcomes, particularly in the services sector. US futures are also lower, failing to hold early positive momentum. Weakness is most evident in the Nasdaq, off -0.35% at this stage.

  • HK and China bourses look to be seeing a bout of profit-taking. The HSI is off by near 1.30% so far today, with the tech sub-index down by 1.70% after yesterday's 4.84% fall. The China Dragon index was also down sharply in Monday US trade, -4.1%. Still, the HSI is up 10.15% for the whole of the month.
  • The CSI 300 is down by 0.80%, more than unwinding Monday's +0.47% gain. The official services PMI surged to 54.4 (versus 52.0 expected). The detail also suggest further improvement in the outlook. The result didn't drive better sentiment in the equity space.
  • The Kospi is off by 0.70% at this stage. A weaker than expected earnings update from Samsung electronics didn't help, while offshore investors have sold around $115mn of local shares today. The Taiex is off by over 1.10%, which comes after yesterday's +3.8% gain and where offshore investors added +$2.5bn to local stocks.
  • Philippine shares also continue to track lower into month end, down nearly 4% over the past two sessions (2.8% today). Indian shares also remain on the back foot (Sensex -0.40% at the moment).

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.