Hong Kong: Rising oil prices, and a loss of faith in the bailout deal for Greece, are pegging down investor sentiment across Asian markets this morning, although global markets are flirting with their highest levels in months and, in some cases, years.
Overnight, Wall Street saw some wild swings. News of the Greek bailout package drove the Dow Jones index momentarily past the 13,000 mark, but pulled back subsequently, to close about level for the day.
The initial euphoria over the Greek bailout deal is already giving way to concern that this at best buys a few more months of calm before another storm hits.
This morning, indices across the Asia-Pacific region are similarly weighed down by eurozone concerns, compounded by a steady uptick in oil prices. Key manufacturing data is due out of China later this morning, and will likely confirm a slowdown in the Chinese economy.
This morning, indices across the Asia-Pacific region are similarly weighed down by eurozone concerns, compounded by a steady uptick in oil prices.
As at 7.30 am IST, Tokyo, Sydney and Shanghai are trading about level, although they were down earlier in the morning. Hong Kong’s Hang Seng Index is down about one half of 1 percent.
Nifty futures too are trading just a notch below the 5650 mark.
Back home, where the indices are at a seven-month high, brokerage firm CLSA expects the current rally in the Sensex to be driven further, on the back of foreign institutional investor inflows, improved corporate earnings and a sense of urgency in governmental policy making.
Today’s opening therefore will be determined by the outcome of a tussle between the optimism that is felt at home and the undercurrent of weakness in global equity markets.
