20th May 2022 Friday: Asian markets gain as investors take a breather

IC Markets No Comments

Global Markets:

  • Asian Stock Markets : Nikkei up 1.28%, Shanghai Composite up 1.23%, Hang Seng up 2.11%, ASX up 1.07%
  • Commodities : Gold at $1840.85 (-0.02%), Silver at $21.90 (-0.06%), Brent Oil at $111.22 (-0.73%), WTI Oil at $108.82 (-0.97%)
  • Rates : US 10-year yield at 2.844, UK 10-year yield at 1.864, Germany 10-year yield at 0.964

News & Data:

  • (USD) Existing Home Sales 5.61M vs 5.65M expected
  • (USD) Unemployment Claims 218K vs 200K expected
  • (USD) Philly Fed Manufacturing Index 2.6 vs 14.9 expected
  • (AUD) Unemployment Rate 3.90% vs 3.90% expected
  • (AUD) Employment Change 4.0K vs 30.0K expected

Markets Update:

Asian stock markets a sea of green on Friday, despite the broadly negative cues from Wall Street overnight, as traders picked up stocks at a bargain after yesterday’s sell-off and on expectations of improved supply-chain in the region amid signs of easing COVID-19 restrictions in China. However, concerns remain about persistent inflation, economic growth and the ongoing war in Ukraine.

The Hang Seng index jumped 2.2% in early trade and was last up 2.1%, while the Hang Seng Tech index spiked 3.5%. Mainland Chinese stocks climbed on Friday. The Shanghai Composite was 1.2% higher, while the Shenzhen Component gained 1.3%.The Japanese stock market is significantly higher on Friday after beginning the session with modest gains, recouping some of the sharp losses in the previous session, with the benchmark Nikkei 225 moving just below the 26,700 level, despite the broadly negative cues from Wall Street overnight, as traders indulged in bargain hunting after Thursday’s sell-off, even as rising worries about high inflation and tightening monetary policies remain.

Crude oil prices rallied sharply on Thursday amid expectations of a pickup in energy demand on reports Chinese officials are planning to ease restrictions in Shanghai. The dollar’s weakness also contributed significantly to the rise in oil prices.

Upcoming Events:

  • 06:00 AM GMT – (GBP) Retail Sales m/m
  • 07:30 AM GMT – (GBP) MPC Member Pill Speaks