Asian Stock Market: Bulls struggle to keep controls amid diverse catalysts

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  • Asian indices dribble near multi-month high as trade/political news join mixed policy signals, vaccine updates.
  • Aussie-China tussle intensify, NZ Treasury eyes upbeat GDP growth.
  • Japan extends relief for covid-hit firms, China’s Industrial Profits post first advance in 2020.

Asian stocks fizzle upside momentum while keeping a low profile during early Friday. The risks dwindle amid mixed signals for vaccine developments as well as China’s trade-punitive action over Australia. Further, Japan’s extension of stimulus to the coronavirus (COVID-19) hit firms, as well as new loan schemes, combats the downbeat inflation data at home and welcome figure from Beijing to further confuse the traders after US Thanksgiving Day dashed earlier risk-on mood the previous day.

Also read: S&P 500 Futures decline towards 3,600 amid mixed clues on covid vaccine

That said, MSCI’s index for Asia-Pacific shares outside Japan drops 0.17% while staying closer to the record top marked earlier in the week. The moves contrast to Japan’s Nikkei 225 that prints 0.33% intraday gains on policy signals and dismal Tokyo Consumer Price Index (CPI) data.

Further, stocks in Australia have to bear the burden of China’s halt in Aussie coal and chatters over anti-dumping duties on wines from Canberra. On the contrary, New Zealand’s NZX 50 gains around half a percent by press time as New Zealand (NZ) Treasury praises the recent jump in the third quarter (Q3) retail sales data.

Elsewhere, Chinese equities dwindle with its tension with Australia and the US suggesting fresh trade/political challenges for the Beijing firms. Moreover, the People’s Bank of China’s (PBOC) readiness to let the markets determine the yuan rate also probes Asian bulls.

Talking about the covid vaccines, US President Donald Trump announced to deliver the cure by the next week whereas the UK government is pushing to fast-track the AstraZeneca approval.

Moving on, a light calendar may challenge the markets from moving much while the return of the US trader may renew buying of the riskier assets.

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