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  • Asian markets bear the burden of losses in China, Hong Kong and Indonesia.
  • Hopes of US Senate’s support to Biden’s $1.9 trillion stimulus, China’s upbeat economics favor bulls.
  • Cautious sentiment ahead of new government’s arrival to the White House, virus woes and a light calendar probes the bulls.

Asian stock markets fail to cheer the gains made in Japan and Australia as equities from surrounding the dragon nation turn red during the early Tuesday. While expectations of more stimulus from the US and jump in the coronavirus (COVID-19) vaccinations have helped the bulls, together with second-tier data, cautious sentiment ahead of US President-elect Joe Biden’s inaugural celebration and mixed risk headline probes the optimism.

While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan rises 1.48% to flirt with the record top while Japan’s Nikkei 225 and Australia’s ASX 200 adds over 1.0% by press time.

Other than the broad risk catalysts, welcome prints of Aussie HIA New Home Sales and headlines suggesting easing of the virus led restrictions in Queensland, as well as Japanese policymakers’ readiness to pump the economy, add strength to the Australian and Tokyo markets.

South Korea’s KOSPI becomes the region’s biggest gainer with over 2.5% upside after the South Korean Vice Finance Minister said they will monitor long-term interest rates and market volatility, which in turn suggest further monetary easing. Moving on, India’s BSE Sensex and Nifty 50 follow the trend with mild gains even as domestic politics and farmers’ agitation roils the mood.

On the contrary, Chinese markets couldn’t cheer upbeat comments from NDRC and the previous day’s growth figures, not to forget Moody’s welcome analysis of the Asia-Pacific region, as US President Donald Trump pushes for cutting down Chinese drones from American military usage. Additionally, China also marked an increase in virus cases from 109 to 118 the previous day.

Elsewhere, New Zealand’s NZX 50 drops around 0.50% while following markets in Beijing as well as increased restrictions for foreigners. Indonesia’s IDX Composing and Hong Kong’s Hang Seng are in the same line. It should be noted that Hong Kong Chief Executive Carrie Lam announced the extension of social distancing measures due to expire on Thursday.

Looking forward, incoming US Treasury Secretary Janet Yellen, ex-Fed Chair, will confront the American Senate to back the Biden Government’s bid for covid stimulus. Although her prepared remarks have already suggested she is likely to praise the move, any surprise or disappointment won’t be taken lightly as she is expected to become the only person who can speak on the USD in the Democratic group.