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  • Asian stocks trade mixed amid risk reset, off in Japan.
  • Stimulus hopes renew while virus woes and Sino-American tussle continue.
  • MSCI’s index of Asia-Pacific shares outside Japan seesaw near the highest in over six months.

Markets in Asia seem to not miss Japanese traders as stocks in Australia and South Korea manage to keep the screens heated ahead of Monday’s European session. Additionally, shares from China and India also join the league of positive signs but those from Hong Kong mark losses as we write. While portraying the mixed mood MSCI’s index of Asia-Pacific shares ex-Japan take rounds the last week’s top, also the highest since February by the press time.

Although the coronavirus (COVID-19) woes get stronger in Australia, with a record death toll of 300, upbeat China inflation data seems to have helped ASX 200 rise over 1.70% to 6,105. The same could be applied to South Korea’s KOSPI which gains 1.4% to 2,385 despite natural calamities hitting the Asian nation.

Overall, the market sentiment stays mildly positive as US President Donald Trump’s recent executive orders pushed the opposition democrats back to the discussion table for phase 4 COVID-19 stimulus package. Though, Mr. Trump’s sanctioning of Hong Kong Leader Carry Liam and White House’s allegations that China is meddling into the US Presidential Election are the headlines that keep challenging the risk-tone.

Talking about the data, China’s July month Consumer Price Index (CPI) and Producer Price Index (PPI) renewed hopes that the Asian major is overcoming the pandemic’s economic impacts. On the contrary, downbeat figures of New Zealand’s ANZ Business Confidence and Activity Outlook trims the gains of NZX 50.

Amid all these plays, S&P 500 Futures rise 0.20% to 3,351 while the US 10-year Treasury yields fail to portray any moves in the absence of Japanese traders. It’s worth mentioning that the US dollar fails to keep Friday’s gains whereas crude oil rises over 0.50% as we write.

Moving on, a light calendar keeps the market players on the lookout of risk catalysts for the fresh impetus. In doing so, virus headlines, stimulus update and the Sino-American tussle will be the key to follow.