Asia market morning update - Asia markets rally on

A holiday-thinned start to the week is expected, though the region is due to continue being enthused by the slew of factors supporting markets.

Thinned market trade

The Easter holiday keeps most markets closed on Monday, including the likes of Australia and Hong Kong, making for thin market trade. This is alongside the break that sustains for most European economies, though the US will notably re-open on Monday. Amid the light data day, markets will likely find little fresh leads to drive trade with only US existing home sales amongst which to watch, in addition to a couple of corporate earnings. Look to the Asia region to ease slowly into the busy week of earnings.

Rally supported

All the above said, one would no doubt notice the rally that had continued across global equity markets last week counting positive earnings, receding near-term political worries and pockets of data surprises as factors push prices higher. A busy week for US earnings lies ahead with approximately 30% of the companies on the S&P 500 index due to report including the likes of Facebook, Microsoft and Amazon that could really effect a change for markets. The broad expectation is for US indices to grind higher given the low expectations for Q1 that sets an easy hurdle. However, with prices nearing all-time highs, some sense of caution may bound to set in. Earnings and the first reading of US’ Q1 GDP at the end of the week would be key for markets this week. This is while the string of central bank is due to remain broadly supportive.

Levels check

US Dollar Index: The rangebound trade for the US dollar index, weighed against the six major currencies, continues amid the lack of impetus within markets. While we do have the likes of EUR downsides, particularly following the weak flash PMIs, one to aid prices higher, expected pullback in USD/JPY which may lock the US dollar index for the time being despite the uptrend. Look to the likes of US Q1 GDP amongst the key releases this week for trade.

USD/JPY: The improvement in risk sentiment had been one to aid prices higher in the previous week, though seeing the resistance now capping further upsides. Positive Chinese Q1 GDP figures alongside the diminishing near term political risks as noted above had altogether weakened the yen strength over the course of last week. That said, with the golden week holiday coming up, the risks to the downside as potential profit taking may set in place, one to watch.

S&P 500: It is an earnings game for the S&P 500 index this week with approximately 30% of the companies due to report and FANGs name such as Facebook and Amazon amongst which. Look to whether caution may set in ahead of these key earnings though the bias remains on the upside with the releases.

Last session: S&P 500 +0.15%; DJIA +0.42%; DAX +0.57%; FTSE -0.15%

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 30
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.