- Equities in Asia cheer Friday’s upbeat US employment data, Sunday’s China trade numbers.
- Hopes of faster economic recovery, receding protests in the US add to optimism.
- Aussie markets are off due to the Queen’s Birthday holiday.
- Japan’s Nikkei cheer upbeat GDP figures, NZX 50 rise as New Zealand lifts all coronavirus restrictions.
Asian shares print mild gains while heading into the European open on Monday. In doing so, the risk barometer benefits from Friday’s surprisingly positive jobs report from the US and Canada while also cheering the weekend report from China suggesting the record trade surplus.
While the rise in the key employment and trade numbers suggest the post-coronavirus (COVID-19) recovery will be steeper, the US-China tussle seems to probe the optimists. The Global Times poured cold water on US President Donald Trump’s threat of levying sanctions on the European Union (EU) and China, if not easing trade restrictions on American lobsters.
Against this backdrop, the MSCI’s index of Asia-Pacific shares outside Japan rises over 0.40% whereas Japan’s Nikkei gains above 1.0% to 23,100 by the press time. It’s worth mentioning that Japan’s second reading of Q1 2020 GDP crosses -0.9% initial forecasts with -0.6% earlier during Asia. Further, New Zealand’s NZX 50 gains over 2.70% after the government scrapped all the virus-related restrictions except for border closure.
Additionally, stocks in China and Hong Kong are posting mild gains amid fears of fresh US-China tussle as Japan also joins the US to voice against the Hong Kong issue. Furthermore, South Korea’s KOSPI follows the like of Beijing and Hong Kong but Indonesia’s IDX rises more than 2.5% while India’s BSE Sensex also gains over 1.5% as both the Asian nations rush towards easing virus-led restrictions.
Elsewhere, the US 10-year Treasury yields pause Friday’s rally around 0.90% whereas the US stock futures trim early-day gains amid a lack of major catalysts. At last, WTI is also among the beneficiaries of the latest optimism as the black gold gains near 3.0% to cross $40.00 for the first time since the early-March.
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