A downbeat start to the trading week across Asia. Indices across the region are in the red in early trades, weighed down by sentiment on Wall Street on Friday, after dismal jobs data caused the three leading indices there to slump by about 1 percent.
As at 7.30 am IST, Nifty futures are down nearly three-tenths of 1 percent, which – bad as it is – is pretty tame compared to where other markets in the region are headed. Tokyo is down nearly 1 percent, and Shanghai and Sydney are down nearly seven-tenths of 1 percent; Hong Kong is weaker by about four-tenths of 1 percent.
China inflation data for June came in this morning at 2.2 percent, slightly lower than consensus estimates, but even that hasn’t bucked up the markets. But over the weekend, the Premier signalled that recent curbs on property prices would not be eased anytime soon, and investors are taking it badly. Sentiment has also been dragged down by disappointing jobs data in the US on Friday.
Back home, analysts expect first-quarter earnings – and the progress of the monsoon – to drive sentiment from this week onwards. Legendary investor Mark Mobius says he sees an end to the downward spiral of investor sentiment in India, noting that the government’s stated intention to end the policy paralysis has already revived it somewhat. Foreign institutional interest in India is perking up again, in expectation of some policy action.
Yet, for today, however, we’ll likely see a weak opening, with earnings announcements setting the tempo for trading sentiment.
(curtsey : first post)
Head Research Department