Global Market Quick Take: Asia – September 5, 2023

Global Market Quick Take: Asia – September 5, 2023

Macro 3 minutes to read
Saxo Be Invested
APAC Research

Summary:  Quiet overnight markets with US and Canada closed for Labor Day holiday. Asia’s positive momentum on the back of China’s broadening stimulus announcement also faltered and European indices closed in minor red. China’s Caixin services PMI and Reserve Bank of Australia meeting eyed in Asia today and whether more AUD gains are likely. Crude oil remains a huge focus with Brent breaking out.


The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events. 

US Equities: The cash equity market was closed in observance of the Labor Day holiday. Index futures were unable to hold gains driven by Asian market rally and ended the shortened session (closed at 1pm New York time) mixed.

China/HK Equities: Following a typhoon-interrupted week, Hong Kong's equity market responded to mainland China's recent property market regulatory changes. This spurred a long-awaited surge in sentiment, propelling both the Hong Kong and mainland Chinese equity markets forward. The Hang Seng Index surged by 2.5%, driven by gains in China's property and materials sectors, while the CSI300 advanced by 1.5%. Notably, overseas investors shifted from a week-long net selling trend to a net purchase of RMB6.9 billion in Northbound flows. Although individual regulatory changes may not cause significant market shifts, the combined impact of several rapid adjustments sends strong signals. This suggests the potential for a sustained rally in both Hong Kong and mainland Chinese equity markets in the near term.

FX: Quiet markets with Labor Day holiday in US and Canada on Monday. USDJPY breaking back above 146.50 in early Asian hours this morning from lows of 144.45 on Friday post-NFP but intervention threat looms. GBPUSD made its way above 1.26 as BOE rate hike remains priced in, with EURUSD still struggling at 1.087 as Lagarde didn’t give any clear signals on the next ECB meeting. AUDUSD stays close to 0.6460 with RBA meeting and China measures in focus – read our FX Watch for more.

Commodities: Brent oil breaking out of recent range as it closes in on $90/barrel amid supply concerns with traders awaiting announcement from Russia and Saudi Arabia, with oil inventories also in focus again this week after last week’s drawdowns. Meanwhile, Chevron launched mediation talks with Australian LNG facilities workers but strike threats continued if a pay deal isn't reached.

Fixed income: The cash Treasury market was shut due to a public holiday. Futures extended last Friday’s selloff in thin trading as the USD45 billion plus heavy corporate issuance calendar looms this week.

Macro: ECB President Lagarde was on the wires yesterday and said that critical for central banks to keep inflation expectations firmly anchored while these relative price changes play out. She stayed away from giving any signals on policy action at the Sept ECB meeting. Current market pricing is for a one in four chance of a rate hike.

In the news: Chinese electric carmakers ramp up push overseas, setting up clash with U.S., European auto giants – via CNBC.

Macro events: Reserve Bank of Australia (12:30pm SGT) could keep rates unchanged, but will it keep the door open for more rate hikes ahead – read full preview in Saxo Spotlight.

Earnings events: Zscaler (after market, Adj EPS est. USD 0.493); Ashtead (before market, Adj EPS est. GBP 0.826/USD 1.051)

For all macro, earnings, and dividend events check Saxo’s calendar.

 

For a detailed look at what to watch in markets this week – read our Saxo Spotlight.

For a global look at markets – tune into our Podcast.

For thematic discussions on developments affecting your portfolio – watch our The Curious Investor videos.

Quarterly Outlook

01 /

  • Macro Outlook: The US rate cut cycle has begun

    Quarterly Outlook

    Macro Outlook: The US rate cut cycle has begun

    Peter Garnry

    Chief Investment Strategist

    The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c...
  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

  • Equity Outlook: Will lower rates lift all boats in equities?

    Quarterly Outlook

    Equity Outlook: Will lower rates lift all boats in equities?

    Peter Garnry

    Chief Investment Strategist

    After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto...
  • FX Outlook: USD in limbo amid political and policy jitters

    Quarterly Outlook

    FX Outlook: USD in limbo amid political and policy jitters

    Charu Chanana

    Chief Investment Strategist

    As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ...
  • Commodity Outlook: Gold and silver continue to shine bright

    Quarterly Outlook

    Commodity Outlook: Gold and silver continue to shine bright

    Ole Hansen

    Head of Commodity Strategy

  • FX: Risk-on currencies to surge against havens

    Quarterly Outlook

    FX: Risk-on currencies to surge against havens

    Charu Chanana

    Chief Investment Strategist

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo...
  • Equities: Are we blowing bubbles again

    Quarterly Outlook

    Equities: Are we blowing bubbles again

    Peter Garnry

    Chief Investment Strategist

    Explore key trends and opportunities in European equities and electrification theme as market dynami...
  • Macro: Sandcastle economics

    Quarterly Outlook

    Macro: Sandcastle economics

    Peter Garnry

    Chief Investment Strategist

    Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p...
  • Bonds: What to do until inflation stabilises

    Quarterly Outlook

    Bonds: What to do until inflation stabilises

    Althea Spinozzi

    Head of Fixed Income Strategy

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ...
  • Commodities: Energy and grains in focus as metals pause

    Quarterly Outlook

    Commodities: Energy and grains in focus as metals pause

    Ole Hansen

    Head of Commodity Strategy

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...

Disclaimer

The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Trading in financial instruments carries risk, and may not be suitable for you. Past performance is not indicative of future performance. Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/en-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.