The Asia Day: Australian stocks flounder as the rest of Asia soars

Quinn Rooney/Getty Images

It’s been a good day for Asian markets, excluding Australia, which closed at a four-month low.

Here’s the scoreboard:

Asian Equities

  • Nikkei 225 20,026.38 (+0.68%)
  • Shanghai Composite 4,400.74 (+2.74%)
  • Hang Seng 27,654.00 (+0.23%)
  • S&P/ASX 200 5,615.50 (-0.77%)

Global Equity Futures

    S&P 500 Futures 2,128.15 (+0.1%)
    DAX Futures 11,686.30 (+0.74%)
    FTSE 100 Futures 6,967.00 (+0.08%)

Chinese stocks, resuming normal activities following a modest decline yesterday, are trading up close to 3%. Financials are leading the charge higher – some say on bargain hunting, others on the potential for further financial industry reforms.

Elsewhere Hong Kong’s Hang Seng is up by 0.26% while the Japanese Nikkei soared back above the 20,000 point level to close up 0.68%.

The region’s one letdown came from Australia with the ASX 200 closing down 0.77%. The index has now lost 6.2% with financials, down 11.4% from March, officially entering a technical correction.

Reflecting the price action in Asia, European and US equity futures are moving higher. The DAX, in response to a weaker Euro, is pointing to a gain of close to 1%.

Speaking of which, the Euro is trading down against most major pairs. The Australian dollar, having tumbled following the release of the RBA monetary policy minutes for May, has recovered all its losses to trade just below the US80c level. Elsewhere the moves have been modest.

On commodity markets both gold and Brent crude futures are lower by around 0.5% while government bond yields are trading mixed.

Looking ahead, data releases today include housing starts and building permits from the US, inflation and trade figures from the Eurozone, CPI, PPI and ONS house price index from the UK along with ZEW investor survey from Germany. On the policy front Bank of Canada Governor Poloz is scheduled to speak, while New Zealand dollar traders will be paying close attention to the latest bi-weekly Global dairy auction.

Forex
EUR/USD 1.1288 (-0.23%)
EUR/GBP 0.7212 (-0.21%)
EUR/CHF 1.0453 (-0.28%)
EUR/JPY 135.38 (-0.28%)
USD/JPY 119.93 (-0.05%)
USD/CHF 0.9261 (-0.03%)
GBP/USD 1.5654 (0%)
AUD/USD 0.7993 0.04

Commodity Futures
Gold Futures $1,220.90 (-0.55%)
Brent Oil Futures $66.06 (-0.32%)

10-Year Government Bond Yields
Japan 0.399% (+0.018%)
U.S. 2.216% (-0.012%)
Germany 0.631% (-0.018%)
UK 1.954% (+0.003%)
Australia 2.947% (-0.017%)

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