Asia equities are trading mixed ahead of the key regional closures next week. Following the choppy performance on Wall Street, the mood was indecisive as robust U.S. data supported taper calls approaching the Quadruple Witching season today. In the U.S., the surprise rise in Retail Sales and Philly Fed Manufacturing boosted the risk sentiment.
On the metals front, regional stocks might continue under pressure as the most-liquid Dalian iron ore futures drop almost 6% after the trade open. The Shanghai silver contract is trading lower by around 3.5%. Worth keeping an eye on a possible USD strength. Also, watch for any new signals from Chinese officials. Yesterday, the National Development and Reform Commission (NDRC) noted that copper, aluminium, and zinc prices are still running at a high level. Reaffirmed that authorities will remain to release material reserves to ensure prices will gradually return to reasonable ranges.
On the macro front for the season ahead, the calendar in Asia-Pacific is relatively limited and lacks major data releases. Traders will be discussing the controversial AU-UK-US pact and Evergrande default risk theme, in which shares are taking a hit in the open, plunging more than 4%. Later in the session, global traders will be trading the Quadruple Witching, and preliminary U.S. University of Michigan Sentiment will hit the wires. A major event that will be on the radar for next week is the Fed decision.
