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  • Asian equities trades mixed as trade/political fears concerning China joins hopes of further stimulus.
  • Expectations from virus vaccine, US President-elect Joe Biden favor combat RBNZ’s comments, downbeat Aussie data.
  • HK Leader Carry Liam reiterates support for China, PBOC adds liquidity via market operations.

Asian markets dwindle amid a light calendar and mostly empty news feed, except Hong Kong (HK) and China, while heading into Wednesday’s European open. The risks struggle for a clear direction as optimism concerning the coronavirus (COVID-19) and Biden’s governance dim amid challenges to the global trade and political linkages with Beijing.

While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan drops 0.24% while Japan’s Nikkei 225 rises around 0.85%, despite fears of strongest activity restriction in Tokyo, by press time.

In his initial remarks after getting the right to access intelligence materials prepared for President, Democratic Party member Biden showed readiness to turn down all executive orders that damage the US. This means China has a scope for a fresh start even if most markets believe otherwise.

On the other hand, Chinese President Xi Xinping marked preparedness to boost covid vaccine cooperation with Germany while Premier Li Keqiang said that the economy will likely return to the ‘proper’ range next year. Elsewhere, Hong Kong’s Chief Executive Carry Lam reiterated her support during the annual policy address, before a Legislative Council. That said, Hong Kong’s Hang Seng rises over 1.0% while Chinese shares trade mixed by press time.

In addition to HK-China news, Aussie Construction Work Done dropped more than expected in Q3 but the ASX 200 marks 0.60% gains as China’s central bank, People’s Bank of China (PBOC), injects net 20 billion yuan into the banking system through open market operations on Wednesday. The same applies to New Zealand’s NZX 50 that prints a 0.20% intraday gain as of writing. In doing so, the Pacific equity gauge struggles for a clear direction as the Reserve Bank of New Zealand (RBNZ) Governor backed lower interest rates.

Moving on, equities from India can’t cheer upbeat economic analysis from Bloomberg, BSE Sensex drops 0.60%, whereas South Korea’s KOSPI and Indonesia’s IDX Composite alternate gains with losses by a minor amount.

Although the calendar remains mostly silent in Asia, the US session is likely to be happening as it will offer the preliminary readings of the third quarter (Q3) GDP and FOMC minutes, not to forget November’s Durable Goods Orders and Michigan Consumer Sentiment for December.