Asian markets expect to be positive today

<p>Asian markets are expected to resume trading this week on a positive note, having fallen perhaps more than needed last week. The higher growth region […]</p>

Asian markets are expected to resume trading this week on a positive note, having fallen perhaps more than needed last week. The higher growth region is adjusting to the impacts of overseas developments – particularly in Europe – and the consequential impact any disruptions will have on individual corporate earnings. Still, markets are looking attractive at current levels with a lot of bad news already factored in to share prices. 

Ahead of the open, the Hang Seng is pointing to a 133 point gain. Hong Kong is a key bellwether for regional sentiment. The range of listed companies and composition of earnings provides a good read for corporate health across the region. Fluctuations in share prices also signal investor sentiment. The Australian market is pointing to a flat open but Friday’s solid close, breaking the important 4075 technical resistance level on the ASX200, will be welcomed. Banks and resources will lead market movements. 

In Australia, Premier Investments will report today and David Jones will report on Wednesday, which will round out the reporting season this week. Premier had reaffirmed its guidance and paid a higher than expected final dividend. 

Management changes at the Commonwealth Bank of Australia (CBA) have the market talking about Asian expansion plans being brought forward. Wealth management and insurance might be the businesses sought out first. 

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.