Thursday, October 6, 2022

Dip Buyers Hunt For China Equities

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Asia in mixed territory after Wall Street surges

Another day, another record close for Wall Street, as strong corporate earnings and subdued US yields keeps the party going. The rose 0.82%, the climbed 0.55%, while the finished a respectable 0.80% higher. Delta nerves have been pushed to the sidelines once again, and the US Infrastructure Bill continues to make progress, it seems.

In Asia, it was a mixed day notable for the dip-buyers in China equities. After yesterday’s “spiritual opium” comments from the government press and a new enquiry into auto semiconductors sparked a panicked sell-off in tech heavyweights, the irresistible lure of seemingly cheap China shares has buyers back once again.

The rose 0.75%, with the climbing 0.65%. The tail-chasing herd have lifted the by 1.15%. Today’s bargain is tomorrow’s expensive mistake with China at the moment, and the rebalancing between price and regulatory risk still has some way to go, I believe.

Japan’s worsening COVID-19 outlook was weighing on the today, which was 0.25% lower, but the leapt by 1.15%, with climbing 0.40%. rose by 1.0%, boosted by excellent results from banking heavyweights and .

The Singapore banking sector has long been a favorite, with well run, well-capitalized and digitally savvy incumbents that are well-placed to benefit from both Singapore and the region’s recovery, even if it is slower than hoped. A Singapore Airlines (OTC:) A380 filmed lifting off from desert storage to return home sees the share price 1.40% higher today in the hopes of better times ahead.

Elsewhere, COVID-19 and political turmoil see fall 0.80%, with Malaysia one of my fragile four. Until one of those things changes materially to the positive side, it shall remain there.

rose by 0.30%, while easing by 0.40%, with climbing 0.40% and quietly outperforming this week.

Australian markets followed Wall Street higher, as is their want, although the ongoing COVID-19 situation is tempering the bulls. The and were finishing the day 0.35% higher.

European stock markets should take their cues once again from Wall Street to open higher.

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