Asian Stock Market: Trades mixed amid Trump’s action over US stimulus

• Asian shares trim the previous day’s losses as US President Trump shows readiness to help airlines, small businesses.
• Australian markets cheer expansionary budget, Nikkei 225 and Indonesian equities print mild losses amid virus woes downbeat data.
• BOJ’s Kuroda sounds cautiously optimistic at the 62^nd Annual Meeting of the National Association for Business Economics.

Asian shares wobble ahead of Wednesday’s European session. While Australian major ASX 200 leads the region on the plus side, Indonesia’s IDX Composite stands on the other extreme. Further, MSCI’s index of Asia-Pacific shares outside Japan prints 0.28% gains but Nikkei 225 drops to the same tune and composition by the time of the press.

Equities attempt recovery following US President Donald Trump’s U-turn on stimulus. The Republican leader triggered Wall Street losses after canceling the bi-partisan talks with the Democrats. However, the latest tweets from Mr. Trump suggest open hands for $25 billion for Airline Payroll Support and $135 billion for the Paycheck Protection Program for small businesses, which in turn renew risk sentiment.

Also favoring the risk-on mood could be the Bank of Japan’s (BOJ) Governor Haruhiko Kuroda’s cautious optimism as well as Aussie traders’ ability to praise tax cuts from PM Scott Morrison and Co.

On the contrary, a five-year EU stainless steel tariff on China, Taiwan and Indonesia joins the steady rise in the coronavirus (COVID-19) numbers from the US, Europe and the UK to challenge the optimists.

Talking about data, Australia’s AiG Performance of Services Index slipped below 42.5 prior to 36.2 while the preliminary readings of Japan’s Leading Economic Index eased from 89.4 expected to 88.8 in August.

It’s worth mentioning that S&P 500 Futures nurse the biggest losses in two weeks whereas the US 10-year Treasury yields are adding 1.2 basis points to 0.75% after dropping the previous day.

Looking forward, global market players will keep eyes on the risk catalysts ahead of the US FOMC Minutes. As a result as lack of major moves can be anticipated before the North American session.