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  • Asian shares remain upbeat amid holiday-thinned trading as Trump signs US COVID-19 aid package.
  • Japan’s Industrial Production improved in November, BOJ Summary of Opinions backs further easing with eyes on JPY strength.
  • Aussie-China tussle continues, UK aims for fresh trade ties with Australia, US, Indo-Pacific region post-Brexit.

Asian equity buyers ignore thin trading volume amid widespread off in multiple markets due to the year-end holidays as US President Donald Trump signed the coronavirus (COVID-19) aid package. While portraying the mood, MSCI’s index of Asia Pacific shares outside Japan rises 0.40% whereas Japan’s Nikkei 225 gains 0.60% during early Monday.

US President Trump surprised global markets by signing the much-awaited aid package and avoiding the American government shutdown. The White House leader earlier demanded the Congress to back the $2000 paycheck to let the bill become law.

Markets in Australia and New Zealand are partially off amid Boxing Day celebrations. Even so, mixed clues entertain trading amid an otherwise dull session. While the UK is up for signing multiple trade deals in the upcoming days after overcoming the burden of the Brexit deal, news from the New York Times suggests China’s downbeat attitude towards Aussie copper imports.

Elsewhere, China also exerts additional downside pressure on the Ant Group. “China’s central bank disclosed on Sunday it had asked the country’s payments giant Ant Group Co Ltd to shake up its lending and other consumer finance operations, the latest blow to its billionaire founder and controlling shareholder Jack Ma,” said Reuters.

Talking about data, Japan’s Preliminary readings of November Industrial Production marked -3.4% YoY figures versus -10% forecast. Though, the monthly readings dropped below 4.0% expected and prior to 0.0%. It should also be noted that the Summary of Opinions for December’s Bank of Japan (BOJ) monetary policy meeting showed that the policymakers favor the further extension of easy money measures with eyes on the Japanese yen (JPY) strength.

Equities in India, China, South Korea and Indonesia are up in the range between 0.50% and 1.0% by the time of writing. Not only Asia-Pacific shares but US stock futures and Treasury yields are mildly bid whereas the US dollar index (DXY) stays on the back foot amid a risk-on mood.

Looking forward, a lack of major data/events will join year-end holiday celebrations to offer dull trading days during the week. However, Thursday’s China PMIs and voting on the Brexit bill in the European and the UK parliaments can offer intermediate moves.