- RBNZ’s rate cut, China’s trade balance, and BOJ meeting minutes, joined previous moves led by the US-China trade pessimism.
- Political rift the US, Iran, and the UK also played their roles.
Asian shares remained on the downside ahead of the Europe open on as multiple key data/events drove market moves to the south.
MSCI index of Asia-Pacific shares ex-Japan declined more than half a percent following Wall Street losses on global trade pessimism whereas Japan’s Nikkei lost nearly 2.0% as minutes of the March month Bank of Japan (BOJ) monetary policy conveyed neutral bias.
Dow Jones Industrial Average (DJIA) lost 1.8% whereas Nasdaq was almost 2.0% in the loss as global traders remained on the back foot due to the trade-related tussles between the US and China.
Risk tone weighed heavy on Tuesday as the US 10-year treasury yields slipped beneath April lows. However, investors’ mood recovery was noticed during the early day as the gauge marked more than a basis point in green to 2.462%.
China’s HANG SENG dropped 0.70% on weaker trade surplus while Australia’s ASX200 was at -0.50% during the press time. Further, New Zealand’s NZX50 bucked the trend with +0.15% gain as the Reserve Bank of New Zealand (RBNZ) offered a 0.25% cut to its official cash rate. Moreover, Indonesia’s Jakarta Composite Index was down -0.62% and India’s BSE Sensex lost -0.73%.
With fewer data/event left for publishing except for German industrial production, traders may closely observe political plays surrounding the US-China trade deal, the US-Iran rift and the UK PM Theresa May’s future position coupled with Brexit.
Germany’s seasonally adjusted industrial production for March could contract with -0.5% against +0.7% prior.
Share
