- Asian equities pullback following the Fed’s measures, amid expectations of further easing.
- Coronavirus cases continue to rise, data from Japan flash mixed signs.
- The preliminary activity indices are awaited for fresh impulse.
Having witnessed a slew of coronavirus carnage during the recent days, Fed’s QE and hope for COVID-19 Bill from the US please Asian share buyers on Tuesday. While portraying the moves, MSCI’s gauge of Asia-Pacific shares outside Japan registers 3.75% gains while Japan’s NIKKEI rise close to 6.0% while taking the bids to 17,900.
The US Senate’s failure to pass the Republican-backed package to combat the coronavirus (COVID-19) couldn’t disappoint US diplomats who are selling the idea of the Bill’s soon passage.
The Fed announced unlimited Quantitative Easing (QE) on Monday after the fears of the pandemic crossed wires. There have been more than 41,700 cases from the US by the end of the Monday the US President Trump anticipated rising further.
On the economic calendar, better than expected 50.0 prints of Australia’s Commonwealth Bank Manufacturing PMI to 50.1 joins the RBA’s increased liquidity infusion to push the ASX 200 up by more than 4.0% to 4,735. The same could be attributed to the NIKKEI which recently benefited from Japan’s Leading Index and Coincident Index numbers for January.
India’s BSE SENSEX and NIFTY 50 mark more than 2.0% gains while shares in China are also on the front foot amid the recent bounce in risk assets.
However, Indonesia’s IDX seems to be the odd one out that loses nearly 1.0% amid a widespread outbreak of the disease.
Moving on, the US 10-year treasury yields rise five basis points to 0.82% with stock futures being more than 3.0% in green by the time of writing.
Looking forward, the preliminary readings of the March month activity numbers will be the immediate catalyst while virus headlines and news concerning the US package could keep the driver’s seat.
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