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Asian markets are having a mixed day

Asian equities are having a very mixed day after stocks in the US ended the quarter on a soft note, although quarter-end flows may have muddied the price action. The S&P 500 fell 1.57%, the Nasdaq fell 1.54%, and the Dow Jones fell 1.56%, even as US yields eased on quarter-end buying and on target US data. In Asia, some of those moves have been immediately reversed, with futures on all three indexes rising around 0.50% today.

The picture in Asia is rather more mixed. Soft PMI data from across Asia and a weak close overnight have been offset somewhat by US futures rallying in Asia. Overall, though, Asia is trading with a slightly negative tone and appears content to wait for the US employment data this evening.

One glaring exception is mainland China’s equity markets which are rallying strongly today. The Shanghai Composite is 0.70% higher, while the CSI 300 has rallied 1.30%. That is despite Caixin PMI data disappointing and tightening Shanghai lockdowns. China markets could well be seeing portfolio inflows from investors related to the start of the quarter or some assistance from China's "national team" to "smooth" markets. Notably, Hong Kong has fallen 0.75% today as Modern Land and Evergrande NEV suspended stock trading, possibly over audit delays.

Elsewhere, the Nikkei 225 has fallen by 0.40%, with South Koreas Kospi losing 0.50%. Taipei is 0.75% lower, with Singapore unchanged and Kuala Lumpur 0.35% higher. Jakarta and Bangkok are flat. Australian stock markets have booked modest gains, the ASX 200 and All Ordinaries edging 0.10% higher.

European equities slumped once again yesterday as potential energy shortages sapped sentiment once again. None of the overnight developments, including President Putin's signing of a "pay in roubles or no gas" order will make the landscape any happier for European equities. I expect them to remain heavy today before we move into the directional turkey shoot known as the US Non-Farm Payrolls.