By Jamie Mcgeever
(Reuters) – A look at the coming day in Asian markets.
Asian shares will be opened at the defensive on Monday, so that the baton will be removed from a bruised Wall Street on Friday, because worries about the American economy and new tariff threats by President Donald Trump won a cloud over world markets.
The local calendar is light, with new -Zeeland retail and inflation of Singapore, the most important data points, and Reserve Bank of New Zealand deputy governor Christian Hawkesby planned to speak in Wellington.
Investors will digest the elections of Germany, which saw a victory for opposition conservatives and the extreme right-wing alternative to Germany’s best show ever.
The market tone on Monday will be one of nervousness and uncertainty, because investors are looking for the safety of bonds, gold and the US dollar. Japanese stock futures indicate a decrease of 1.75%.
Unexpectedly weak data from the US and European Economic Activity have set the tone on Friday and reasonably market-friendly signs during the weekend’s prospects of an American mediated Russia-Ukraine-peace agreement, it is unlikely that it will improve a lot.
Treasury proceeds fell last week, Gold Rose was for an eighth week – its best run since 2020 – closing to $ 3,000 per ounce, while the dollar stopped the rot of his recent sale.
The Nasdaq fell 2.5%, the worst week in three months, lagging behind are global colleagues and what indicated that the American outperformance that has been the characteristic of global shares in recent years.
Just as strategists of the Bank of America joked, the ‘Magnificent Seven’ can now be the ‘Lagnificent Seven’.
The MSCI World Index fell by 1% last week, Euro Zone shares broke off only 0.3% in the week after making a new record high, and the MSCI asia ex-Japan index rose 1.5% for a sixth Weekly profit in a row. That is the best run since November 2022.
A rotation from Wall Street to Europe and Asia seems to be going on, someone can see why – American stocks are overloaded, ratings are expensive and the positioning is stretched. Europe and Asia look attractive.
EPFR traced European stock funds in the third week of February registered their biggest inflow since the beginning of 2022 and Chinese technical shares mentioned in Hong Kong, a stunning 35% have risen over the past six weeks.
That momentum will probably not last, and next week a retracement could see. But the most important indices in mainland China, Japan and India are still in a negative area for the year – can their weak exchange rates seduce a wave of influx?
Investors welcomed the meeting of President Xi Jinping last week with Chinese technology and other managers, and the Feel-good factor seems to make nervousness around the Yuan and uncertainty surrounding the threat of American rates and potential trade war.