Asia-Pacific markets post bearish gains
Markets in the Asia-Pacific region have remained quiet at the end of Monday's trading as public holidays in China, Hong Kong, and South Korea have kept only Tokyo's Nikkei and Australia's S&P 500 working until the afternoon.
Australia's stock market managed to pull up from this morning's low of 4550 to 4565 and it would have managed to bounce back more if not for the lack of trade in Asia, according to IG Markets strategist Ben Potter in an emailed clients briefing note.
"The Nikkei 225 is the only market open, and is down 0.9 percent following the bearish US leads after the very disappointing US jobs report," added Mr. Potter.
In Australia, the ASX 200 is 0.4% weaker at 4565, off session lows of 4551. With not much of a lead from Asia due to public holidays, the local market is seeing broad-based weakness on light volumes. Consumer discretionary and industrial names are detracting the bulk of the points while energy and materials names are also seeing modest losses. On the upside, the defensive utilities sector is the only positive performer.
RBA Meeting Tomorrow
CMC Markets chief market analyst Ric Spooner said in a separate note that Australian traders were also reluctant to take on new equity position prior to tomorrow's Reserve Bank meeting.
"Whilst most analysts don't expect a rate increase given recent softening in international growth, they don't entirely dismiss the possibility. Any indication in Governor Stevens' statement tomorrow that a rate hike is not far away, is likely to be a short term negative for stocks exposed to domestic consumers," Mr Spooner said.
Crucial US Equities
The performance of the US equity markets is seen as key to tomorrow's market rebound, added Mr Potter.
"If US markets can bounce tonight and show that we're not on a 'slippery slope' lower, then confidence and sentiment will receive a much needed boost, which should see some money flow back towards Australian equities tomorrow," he said.