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  • Asian equities gain as global economies ease lockdown restrictions.
  • UK, California, Saudi Arabia recently announced measures to ease the virus-led stipulations.
  • US-China tussle fails to weigh the risks amid absence of US President Trump’s criticisim to Hong Kong issue.
  • The return of the full markets will be the key while US data and qualitative catalysts will also offer a busy day ahead.

Asian shares shrug off the US-China tussle as increasing optimism surrounding the economic reopen dominates the market mood during the pre-European session on Tuesday. In doing so, the MSCI’s index of Asia-Pacific shares outside Japan rises over 1.40% while Japan’s NIKKEI prints 2.45% gains by the press time.

In addition to the absence of US President Donald Trump’s reaction to China’s Hong Kong Security bill, further clarification of how the activities in the UK, California and Saudi Arabia will return to normal seem to have favored the markets’ risk-tone sentiment. Furthermore, upbeat odds concerning the coronavirus (COVID-19) cure adds to the optimism.

That said, Australia’s ASX 200 becomes another gainer of the day to rise above 2.0% whereas stocks in China and Indian stay mildly positive, below 1.0%, as we write. Moving on, New Zealand’s NZX 50 rises above 1.50% while portraying benefits from mixed trade numbers and easing lockdown measures as marked by the PM Jacinda Ardern the previous day. Additionally, Indonesia’s IDX and South Korea’s KOSPI was also up more than 1.0% but the Philippines’ PSEi Composite bucks the trend with a 0.76% loss to 5,496.

It’s worth mentioning that the US stock futures gain around 2.0% with Dow Futures adding more than 450 points to 24,890. Moreover, the US 10-year Treasury yields rose 1.8 basis points (bps) to 0.678% by the press time.

Looking forward, the return of the UK and the US traders from a long weekend will magnify the market’s moves. Though, this also highlights the risk of the change in trade sentiment if US-China tension regains attention. On the data front, US indices from the Chicago and the Dallas Fed will join the US housing market numbers to offer more liquidity.