Asian Stock Market: Sober welcome to Biden’s infrastructure plan amid virus woes
FXStreet News

Asian Stock Market: Sober welcome to Biden’s infrastructure plan amid virus woes

  • Asia-Pacific equities print mild gains while tracking Wall Street benchmarks to north.
  • China’s Caixin Manufacturing PMI surprised to the negative side.
  • France, Canada calls fresh lockdown, Australia ready to unlock Brisbane on certain conditions.
  • Japan, South Korea and Aussie data came in positive.

Asian shares begin April on a positive note after snapping the four-month rally in March. While tracing catalysts, US President Joe Biden’s $.25 trillion infrastructure spending plan becomes the key to follow whereas upbeat activity figures from Japan and South Korea are extra positives to watch.

Amid these plays, MSCI’s index of Asia-Pacific shares outside Japan rises 0.83% while Japan’s Nikkei 225 copies the trade with 0.86% intraday gains, around 29,430, while heading into the European session on Thursday.

Australia’s ASX 200 gains half percent but New Zealand’s NZX 50 and Indonesia’s IDX Composite print mild losses while following China’s surprisingly negative Caixin Manufacturing PMI for March. Also challenging Indonesian markets could be downbeat inflation figures at home.

It should, however, be noted that stocks in Beijing have been mildly positive despite downbeat data and the US Trade Representative (USTR) vow to keep battling ‘significant’ foreign trade barriers, indirectly targeting China. The same helps stocks from Hong Kong and India even as challenges to US President Biden’s infrastructure plan are likely to stop the eight-year-long spending bill.

S&P 500 Futures wobble above 3,950, up 0.105 intraday, whereas the US 10-year Treasury yield and the US dollar index (DXY) also look for fresh clues after the recent rally. WTI eyes the OPEC+ meeting while printing 0.30% intraday gains.

Other than the oil producer’s likely extension to the output cut, US traders’ reaction to the $2.25 trillion stimulus and fears of fresh virus woes in France and Canada will also be important to watch.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.