Asian Stocks Up, but Traders “Glued to Their Seats” Over $20 Billion Trade By

© Reuters.

By Gina Lee – Asia Pacific stocks were mostly up Monday morning, but concerns remain about possible knock-on effects from a wave of block trades on Friday.

Japan’s gained 0.89% by 11:20 PM ET (3:20 AM GMT), with Nomura Holdings (NYSE:) Inc.’s (T:) Japanese shares diving after the company warned of a possible “significant” loss arising from transactions with a U.S. client.

The Bank of Japan also released , which said that the central bank could heighten transparency and stabilize markets by clarifying the band at which it allows long-term interest rates to move around its 0% target.

South Korea’s edged up 0.11%.

In Australia, the was down 0.29%, with the country’s third-largest city of Brisbane will impose a snap three-day lockdown starting later in the day.

Hong Kong’s edged up 0.12%.

China’s was up 0.55% and the gained 0.65%. The country will release and purchasing managers index (PMI) figures later in the week. The is also due within the week ahead, with the due the week after.

U.S. equity futures fell after it was revealed that , former Tiger Management trader Bill Hwang’s family office, was behind the block trades totaling $20 billion. The trades started dumping Chinese tech and U.S. media conglomerate shares, including those of ViacomCBS Inc (NASDAQ:) and Discovery Inc Class A (NASDAQ:), amid margin calls ahead of the weekend. Morgan Stanley (NYSE:) reportedly offered the latest batch of ViacomCBS shares on Sunday.

Shares in the two companies could actually recover on Monday, with the market’s fundamentals remaining intact as “the correction was not structural,” Safehouse Global Consumer Fund portfolio manager Sharif Farha told Bloomberg.

Farha expected benign price action as Asian markets opened but added that anticipation for Monday’s U.S. open remains high.

“Traders everywhere know the story and will be glued to their screens,” he added.

Other investors also seemed unworried.

“I don’t necessarily see that we’re going to have a big correction even with these block trades going on in the market… there is not a lot of bad news lurking that’s going to truly cause a major correction at least the next two to three months, therefore your dips are going to be modest,” Pepper International chief executive officer and founder Carol Pepper told Bloomberg.

Also boosting investor sentiment were signs of a quickening in both the U.S. economic recovery from COVI9-19 and the pace of its vaccine rollout. U.S. President Joe Biden is also expected to provide further details about another stimulus package, this time tilted towards infrastructure, on Wednesday.

The U.S. employment report for March, including , is due on Friday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link