Asian Stock Market: Wall Street gains back bulls to battle covid woes in India, Japan

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  • Asian shares trade mostly positive amid virus concerns, economic recovery hopes.
  • China dwindles amid crackdown on tech stocks, Japan ignores fears of third emergency.
  • India reports record daily infection above 300K, unfortunately, surpasses all virus-infected countries’ previous readings.
  • BOC’s surprise tapering keeps traders hopeful ahead of the ECB, US dollar weakness also supports the upbeat mood.

Although US equities led the Asian counterparts high amid the early Thursday, the mood recently seems to sour as India marks the highest coronavirus (COVID-19) tally. Even so, most markets in the region remain to portray the biggest daily gains of the day.

Behind the positive moves could be the Bank of Canada’s (BOC) trimming of weekly asset purchase on Wednesday, as well as hopes of the faster US economic growth since 1984.

Amid these plays, MSCI’s index of Asia-Pacific shares registers the biggest intraday gains in a month while Japan’s Nikkei 225 jumps over 2.0% by the press time.

Shares in Australia and New Zealand print half a percent gains each while following the broad sentiment. National Australia Bank’s Business Confidence offers extra support to the Aussie bulls.

It’s worth mentioning that China’s crackdown on technology shares and the dragon nation’s latest dislike of Australia’s rejection of the “Belt and Road” initiative stop bulls from Beijing but stocks in Hong Kong and South Korea remain mildly bid. Elsewhere, markets in Indonesia and the Philippines stay offered while following India’s covid woes.

As per the latest coronavirus (COVID-19) details from India, new infections stood at 314,835, surpassing the previous single-day record by the US, of 314,312 cases on 21 December.

It should be noted that the US 10-year Treasury yields drop three basis points (bps) to refresh weekly low near 1.53% while S&P 500 Futures print mild losses and the US dollar index (DXY) remain depressed by the press time.

Looking forward, monetary policy meeting by the European Central Bank (ECB) will be the key event of the day while the US jobless claims and data relating to housing and manufacturing will also be important to watch. It should be noted that the looming concerns over the US infrastructure spending and vaccine updates are extra catalysts to watch.

Read: S&P 500 Futures drop back towards 4,150 as covid, geopolitics test bulls

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