Asia-Pacific markets blended as buyers search for course

SINGAPORE – Australian stocks rose more than 1% while markets in Hong Kong and South Korea fell on Monday ahead of decisions by the Australian and Malaysian central banks this week.

The S&P / ASX 200 up 1.26%, with banking and retail in the green.

Markets in Japan and mainland China are also higher.

The Nikkei 225 in Japan rose earlier to trade 0.54% higher, while the Topix index was up about 1%.

In China, Shanghai Composite up 0.14% and Shenzhen Ingredients up 0.9%.

We’re probably going to have a hard time at the bottom, maybe there’s going to be a bit more going down from here.

Dan Fineman

Co-head of Asia-Pacific equity strategy, Credit Suisse

Stocks in Hong Kong and South Korea fell.

The Hang Seng Index closed on Friday and fell 1.8% in early trading on Monday. The last time it was down 0.59%.

Exchange-traded funds will be included in a securities connection scheme linking Hong Kong and mainland China from Monday.

Korea Kospi initially struggled to find direction and ended up falling 0.91%, while Kosdaq fell 1.92%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.13% lower.

In Southeast Asia, Indonesia’s Jakarta Composite fell 2.54%.

Dan Fineman, co-head of Asia-Pacific equity strategy at Credit Suisse, said markets appear to have priced in the amount of Fed increases coming, but “recession risk is very high.” which means the market is unlikely to recover. .

“I think the worst is behind us. We will probably have a hard time down the bottom, maybe a little bit more drop from here, but I think the difficulties of the first half will not be repeated. again on the same scale in the second half”. he told CNBC’s “Street Signs Asia” on Monday.

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The US Dollar Indextracks the greenback against its basket of currencies, at 105.143.

“The possibility of a 75bp rally at the June and July meetings is keeping the dollar strong in the near-term, but we maintain our core view that dollar strength will wane towards year-end.” Richard Yetsenga, chief economist at ANZ, wrote in a Monday Note.

The Japanese yen was trading at 135.14 per dollar, strengthening from a weak 137 per dollar last week. The Australian dollar at $0.6806 after recovering from the recent lows below $0.679.

Oil futures prices fell in the afternoon session of Asia. US crude oil futures down 0.22% to 108.19 USD/barrel, while Brent Crude Oil Futures contracts fell 0.21% to $111.39.

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