- Asian stocks portray the sea of red, ignores a pause in oil slump.
- US President Trump threatens to temporarily ban immigration, North Korean leader struggles after cardiovascular surgery.
- WHO cites risk of a resurgence, RBA minutes, RBNZ statement also praises the bears.
With the risk aversion in full-steam, Asian stock bears battle it out to flash the red across the board ahead of the European session on Tuesday.
A pause on the WTI’s slump, coupled with US President Donald Trump’s push to re-start the economy, should have helped the risk-tone sentiment. Though, news of danger to the North Korean leader Kim Jong-un’s health and President Trump’s hint to temporarily ban immigration into the US recently weigh on the market’s trade sentiment.
Also increasing strength into the risk-off wave could be the statements from the World Health Organization (WHO), RBA minutes and the RBNZ Governor.
While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan drops more than 2.0% whereas Japan’s NIKKEI follows the footstep as trimming near 400 points to 19,300 by the press time.
Further, stocks in Australia and New Zealand are down 1.6% and 2.3% respectively whereas South Korea’s KOSPI also bears the burden of the negative news for the neighboring economy with 1.5% losses to 1,870.
Moving on, India’s BSE SENSEX nosedives more than 2.7% to 30,772 while shares in China and Indonesia are also over 1.0% in the red.
Additionally, US 10-year Treasury yields slip more than two basis points (bps) to 0.60% with the stocks futures down over 0.50% by the time of writing.
Although economic docket will offer an active day ahead, news concerning the second aid packages from the US and Japan, coupled with the coronavirus updates, will be important to follow.
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