Search ForexCrunch
  • Asian traders buoyed by China’s readiness for stimulus.
  • South Korea’s KOSPI turns out to be the winner with NZX50 standing on the other end.
  • UK politics, data will be the key to watch.

With the sluggish trade data over the weekend raising hopes for further stimulus from China, Asian stocks remain mostly positive while heading into the European open on Monday. In addition to increasing odds of Chinese stimulus, positive sentiment surrounding the US-China trade deal also favors the Asian traders to remain upbeat at the start of the key week including monetary policy meeting by the European Central Bank (ECB).

On Friday, China’s central bank, People’s Bank of China (PBOC), announced its readiness to cut the reserve requirement for banks and other financial institutions in order to shore up the domestic liquidity. The move got additional confirmation after China’s August month trade numbers showed urgency of government efforts as the US-China trade war is weighing heavily on the data.

South Korea’s KOSPI is leading the gainers with nearly 0.6% profits, followed by Japan’s NIKKEI with 0.5% positive mark, whereas New Zealand’s NZX 50 stands on the other extreme with nearly 0.4% loss. Overall, the MSCI’s index of Asia-Pacific shares outside Japan flashes close to 0.2% profits by the press time while China’s HANG SENG remains mostly unchanged to -0.10% and India’s SENSEX gains around 0.50% by the time of writing.

Risk tone also remains positive as the latest news concerning the US-China trade talks has so far been worth welcoming. The White House Economic Adviser Larry Kudlow confirmed Chinese Deputies’ visiting during late-September ahead of the key October trade meeting.

Moving on, investors will keep an eye of the British politics where the Prime Minister (PM) Boris Johnson will make last-ditched efforts to call a snap election. On the economic calendar, the United Kingdom’s (UK) Manufacturing/Industrial Production and monthly Gross Domestic Product (GDP) data will be the key to watch.