- Asian equities remain mildly offered as traders seek clues of the recent swing in market mood.
- A lack of data, except for China’s trade numbers, joins US Labor Day Holiday to restrict market moves.
- US-China tussle continues, UN Chief suggests fresh talks between the US and Korean neighbors.
Asian shares ignore upbeat prints of China’s trade numbers while heading into the European session on Monday. The reason could be traced from an absence of any major data/events on the economic calendar and Labor Day Holiday in American and Canada. While portraying the mood, the MSCI index of Asia-Pacific shares outside Japan drops 0.10% while Japan’s Nikkei 225 declines 0.38% to 23,117.50 by the press time.
China’s Trade Balance grew $28.9B versus a $50.5B forecast in August. Further details suggest that the Exports rose 9.5% compared to 7.1% prior while Imports eased to -2.1% against +0.1% expected and -1.4% prior. Even so, equities in China and Hong Kong remain on the back foot by around 0.30-40% as the Sino-American tension escalates. The CNBC came out with the news suggesting that the Trump administration is mulling imposing controls on China’s state-owned Semiconductor Manufacturing International Corporation (SMIC).
Elsewhere, Australia’s ASX 200 struggles to find direction around 5,925 as the coronavirus (COVID-19) vaccine hopes confront the US-China tussle. The same can’t be said for New Zealand’s NZX 50 as it bucks the trend with 0.25% gains. Further, calls that the US and Korean nations should restart the denuclearization talks propelled South Korea’s KOSPI that adds 0.60% to 2,383 as we write.
Moving on, Indonesia’s IDX Composite and India’s BSE Sensex print mild losses of near 0.20% even as the virus woes gain momentum in the Asian nations. It’s worth mentioning that India crosses Brazil while being the world’s second-largest cases of the pandemic.
It’s worth mentioning that Wall Street dropped Friday even as the US employment data flashed welcome results and increased odds of the COVID-19 aid package.
Looking forward, a lack of major data/events will keep the global markets mostly dull with the recently high risk of no-deal Brexit and the Sino-American tussle likely to entertain the momentum traders.
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