Wednesday 02nd November 2022: Asian markets are trading mixed

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.06%, Shanghai Composite up 1.09%, Hang Seng up 2.12%, ASX up 0.14%
  • Commodities : Gold at $1653.40 (+0.22%), Silver at $19.66 (-0.05%), Brent Oil at $95.62 (+1.02%), WTI Oil at $89.49 (+1.27%)
  • Rates : US 10-year yield at 4.057, Germany 10-year yield at 2.127

News & Data:

  • (NZD) Unemployment Rate 3.30% vs 3.20% expected
  • (NZD) Employment Change q/q 1.30% vs 0.50% expected
  • (USD) JOLTS Job Openings 10.72M vs 9.75M expected
  • (USD) ISM Manufacturing PMI 50.2 vs 50 expected
  • (AUD) Cash Rate 2.85% vs 2.85% expected

Markets Update:

Asian stock markets are trading mixed on Wednesday, following the broadly negative cues from Wall Street overnight, as traders remain cautious and are consolidating their position ahead of the US Fed’s monetary policy announcement later in the day. A weak U.S. dollar and lower bond yields contributed aided market sentiment. Asian Markets closed mostly higher on Tuesday. The Fed is widely expected to raise interest rates by another 75 basis points, but traders have expressed optimism the central bank will signal plans to slow the pace of rate hikes at upcoming meetings.

Chinese stock indexes rallied further on Wednesday amid increased speculation that the government will tone down the strict zero-COVID policy that has roiled the country’s economy this year. 

The Japanese stock market is slightly higher in volatile trading on Wednesday, extending the gains in the previous two sessions, with the Nikkei 225 staying below the 27,700 level.

The Australian stock market is modestly higher on Wednesday, extending the gains in the previous two sessions and Traders are also digesting the Reserve Bank of Australia modest interest rate hike.

Oil prices rose more than 1% on Wednesday after industry data showed a surprise drop in U.S. crude inventories, suggesting demand is holding up despite steep interest rate hikes dampening global growth.

The U.S. dollar slipped from near a one-week peak versus major peers on Wednesday, with traders on tenterhooks before a looming Federal Reserve rate decision that should also give clues on the future policy path.

Upcoming Events:

  • 12:15 pm GMT – (USD) ADP Non-Farm Employment Change”
  • 06:00 pm GMT – (USD) FOMC Statement
  • 06:00 pm GMT – (USD) Federal Funds Rate
  • 06:30 pm GMT – (USD) FOMC Press Conference
  • 08:00 pm GMT – (NZD) RBNZ Gov Orr Speaks