- Asian stocks seesaw amid hopes of virus cure and fears of the wave 2.0.
- US-China tussle intensifies, RBA’s Lowe joins other central bankers to suggest further easing.
- Preliminary readings of May PMIs, US Jobless Claims and Canadian data will keep traders busy.
While hopes of further easing from global central banks and governments keep Asian shares away from a slump, worries concerning the coronavirus (COVID-19) resurgence and the US-China tussle keep sellers hopeful.
A slew of central bank policymakers from Canada, the US and UK reiterated their support for easy money policy on Wednesday. Though, none on them, except for BOE’s Bailey, favored negative rates. Also joining the chorus was FOMC minutes that kept praising the current monetary policy while defying negative Fed rates. The dovish signals were then carried forward by the RBA Governor Philip Lowe during early Friday’s panel discussion in Sydney.
Although expectations of more liquidity kept Wall Street on the positive side on Wednesday, stocks in Asia dwindled as the tension between the world’s top two economies intensifies. The US Senate passed a bill on Wednesday that could stop Chinese companies from listing on the American exchanges. In return, China’s Global Times took opportunities to criticize the Trump administration and US President Donald Trump’s tweets.
Elsewhere, increasing virus numbers from South America and certain other Asian nations recall the fears of a pandemic. On the contrary, global scientists are jostling to find the cure of the deadly virus while some of the early trials have already suggested promising results.
Amid all these catalysts, MSCI’s index of Asia-Pacific shares, ex-Japan, mark 0.16% gains whereas Japan’s NIKKEI trims early-day gains while taking rounds to 20,620, up 0.15% on a day. Further, Australia’s ASX paid a little heed to the RBA’s Lowe while flashing 0.10% gains amid the Aussie-Sino tussle but New Zealand’s NZX 50 drops 0.65% considering the recently downbeat comments from the RBNZ’s Ha.
Additionally, equities from China and Indonesia struggle for direction with negligible losses while those from India and South Korea post mild gains by the press time of early Friday.
Moving on, the preliminary activity numbers from the UK, Europe and the US will be followed to know as to how the key economies have responded to the easing in lockdown restrictions. Also adding to the economic line will be the US Jobless Claims, economics from Canada and updates concerning the virus and the US-Aussie trade relations with China.
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