- Asian equities wave amid fears of widespread coronavirus resurgence.
- Australia announces measures to tame the pandemic, UK stimulus eyed.
- Japan’s Nishimura urges for immediate countermeasures while the US new cases cross a 3.0 million mark.
- Nothing major on the economic calendar but Brexit, British aide package will join pandemic headlines to move the markets.
Asian shares fail to ignore the coronavirus (COVID-19) woes amid a sustained rise in Chinese stocks. As a result, MSCI’s index of Asia-Pacific prints 0.57% gains but Japan’s Nikkei losses over 0.60% to 22,470 while heading into the European open on Wednesday. In addition to the record high pandemic numbers from the US, the Australian Capital Territory’s (ACT) cautious move on further easing of restrictions and Aussie Treasurer Josh Frydenberg’s hint for extended stimulus also weigh on the risk-tone sentiment.
Furthermore, Australia’s upgraded travel warning for China and the US policymakers’ attack on the dragon nation, via hardening visa restrictions and thinking over the Hong Kong dollar peg, also played their part to spread market pessimism. Additionally, Japan’s Economy Minister Yasutoshi Nishimura recently urged for the immediate coronavirus countermeasure. Hence, Australia’s ASX 200 drops over 1.3% to 5,948. Though, New Zealand’s NZX 50 remains mostly unchanged as domestic fundamentals remain upbeat and the virus has a low presence there.
Chinese equities register another day of gains, currently adding around 0.70%, amid hopes of further stimulus and one more day of zero pandemic figures from Beijing. Further, South Korea’s KOSPI stays mildly offered around 2,160 whereas Indonesia’s IDX Composite adds 1.3% despite 12-year low Indonesia Retail Sales. Additionally, India’s BSE Sensex struggles for a firm direction around 36,630 but Hong Kong’s Hang Seng adds 0.40% to 26,080 as we write.
On Tuesday, Wall Street marked the bears’ entry but S&P 500 Futures seem to ignore the negative hints with mild gains around 3,140. Further, the US 10-year Treasury yields remain sluggish around 0.65% after losing 4.4 basis points (bps) the previous day.
While the global economic calendar has a few data/events that can entertain the markets, traders will keep eyes on the Brexit talks and UK Chancellor Rishi Sunak’s widely-anticipated stimulus for immediate direction. Above all, virus headlines and news relating to China will keep the driver’s seat.
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