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  • Asian equities remain mildly bid as major bourses are off on Easter Monday.
  • Strong US employment, odds of further stimulus favor risks amid quiet trading.
  • China’s covid cases jump the most in two months, Indian infections jump the most ever.
  • US 10-year Treasury yield wobbles recover, stock futures stay firm.

Given the off in major Asia-Pacific markets and the coronavirus (COVID-19) resurgence flashing mixed signals, not to forget optimism emanating from the US, shares in the region struggle for a clear direction amid early Monday.

While portraying the mood, MSCI’s index for Asia-Pacific shares outside Japan drops 0.05% whereas Japan’s Nikkei 225 rises 0.91% by the press time.

Friday’s strong US employment figures join signals that US President Joe Biden may use special powers to push his $2.25 trillion infrastructure spending plan through the Senate to back the market optimism portrayed by the S&P 500 Futures. Additionally, weekend comments from Japan, favoring more stimulus and additional budget, favor the bulls from Tokyo.

On the contrary, the jump in the covid cases in China and India weighs on the risks amid a light calendar whereas Australia’s recovery from virus transmission battles pessimism in Europe due to the COVID-19.

China reported its biggest daily jump in new COVID-19 cases in more than two months due to the fresh virus infections from Myanmar. On the same line, India reports the highest ever 100k new covid-19 cases in a day, per Reuters.

Given the off in Australia, New Zealand, Hong Kong and China, coupled with the upbeat catalysts for Japan, stocks from India, South Korea and Indonesia were left to bear the burden of covid resurgence.

Elsewhere, the S&P 500 Futures rise 0.50% by the press time, keeping Friday’s gains around the all-time high, whereas the US 10-year Treasury yield recently recovered to 1.72%, following the initial losses that copied late last week’s moves.

Looking forward, US PMI data will be the key to watch amid a light calendar and off in multiple markets. Also important is the fresh fear of the virus and chatters surrounding the US infrastructure spending plan.

Read:  US Services Purchasing Managers’ Index March Preview: Expectations are high