- Asian equities cheer the latest risk-on despite disappointing China GDP.
- Plans to re-open the US economy, updates on Gilead’s Remdesivir lure risks.
- RBI’s hidden rate cut fails to catch major attention.
- A light economic calendar keeps virus updates in focus.
Asian stocks gain on Friday as hopes of the coronavirus (COVID-19) cure joined hands with US President Donald Trump’s plans of the phased economic restart. That said, China’s downbeat GDP and Retail Sales failed to dim better than forecast Industrial Production whereas the Reserve Bank of India’s (RBI) action failed to get noticed.
While portraying the risk-on sentiment, MSCI’s gauge of Asia-Pacific shares, outside Japan, mark 2.50% profits whereas Japan’s NIKKEI rise over 3.0% gains to 19,870 by the press time.
Shares in China paid a little heed to -6.8% YoY GDP data and so do Australia’s ASX 200 that is 1.8% in green to near the four-year high. Further, New Zealand’s NZX 50 advances even more by 2.7% to 329 amid comparatively better fundamentals at home.
India’s BSE SENSEX flashes over 2.0% rise to 31,290 whereas Hong Kong’s HANG SENG and Indonesia’s IDX also pleasing the bulls with near 3.0% gains each.
On a broader scale, the US 10-year Treasury yields partways from the previous day’s declines with nearly five basis points (bps) of a hike to 0.66% while the stock futures are also up more than 3.0%. It should also be noted that Wall Street managed to skip another daily negative closing as the final hours turned positive despite pessimistic US data.
Given the light economic calendar ahead, virus updates will be the key to forecast near-term trade direction. Among them, any further positives concerning the Gilead’s Remdesivir could keep the bulls happy for longer.
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