- Asian equities stop after a rise even if Chinese manufacturing gauge rose unexpectedly.
- The risk tone remains sluggish ahead of the key data/events.
- US-China trade story seems to gain less market attention in recent hours.
With the global markets are gearing up for the key US jobs report, a surprise increase in China’s Caixin Manufacturing Purchasing Managers Index (PMI) couldn’t please Asian share buyers while pessimism surrounding US-China trade relation keep the downside pressure with lesser impact.
Risk-tone stays little changed with the US 10-year Treasury yields taking rounds to 1.7% after a heavy slump the previous day. On the other hand, S&P 500 Futures also follow the bounce while Wall Street closed in the red.
The MSCI’s index of Asia-Pacific shares outside Japan gains +0.29% while Japan’s NIKKEI registers losses of nearly the same magnitude as comments to favor less of easy monetary measures weigh over downbeat Unemployment Rate at home. Further, Hong Kong’s HANG SENG stay +0.44% while India’s BSE SENSEX is nearly unchanged by the time of writing.
Additionally, Chinese equities were broadly challenged amid doubts over the US-China trade deal while that of Australia stays unchanged and New Zealand witnesses downside pressure amid increasing call of a delayed rate cut from the Reserve Bank of New Zealand (RBNZ).
Moving on, manufacturing numbers from the United Kingdom (UK) and the United States (US), coupled with Swiss inflation data and Retail Sales, could entertain short-term traders ahead of the all-important US Nonfarm Payrolls (NFP), expected 89K versus 136K. Also adding colors towards the weekend will be comments from some of the Fed policymakers including the Federal Reserve Vice Chairman Richard Clarida and Federal Reserve Bank of New York President John Williams.
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