Asian stocks lack clarity as signs from global politics confront RBA’s dovish bias
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Asian stocks lack clarity as signs from global politics confront RBA’s dovish bias

  • Mixed signals from politics question bearish indication from the RBA.
  • Markets could remain less volatile due to the thin economic calendar.

Shares on Asian bourses remained mostly directionless amid mixed moves by global politics and central banks like the RBA and the Fed.

While news of the US giving temporary relief to China’s Huawei and the US President Donald Trump’s readiness to talk to Iran could have played an upside tune, dovish bias over incoming economics by the Reserve Bank of Australia’s (RBA) Governor Stephen Lowe and no strong monetary policy signal from the Federal Reserve Chairman Jerome Powell muted the sentiment while heading into to European session.

However, MSCI’s index of Asia Pacific stocks ex-Japan managed to remain up from Friday’s four-month low whereas Japan’s Nikkei was losing nearly 0.12% by the press time.

Australia’s ASX200 was almost unchanged as the US-China trade tension tamed market happiness based on the RBA minutes and the Governor’s speech indicating June rate cut. On the other hand, New Zealand’s NZX 50 was close to -0.15% as doubts over the economics of its largest trading partner, Australia, joined weaker than expected credit card spending at home.

Moving on, India’s BSE Sensex seems to cheer exit polls that support the claim of the present BJP government’s re-election while China’s Hang Seng also is in positive to +0.22% based on the latest news from the US.

The Wall Street marked losses due to yesterday’s pessimism concerning the US-China trade relations and likely chances of the US-Iran war. Among them, Nasdaq declined more due to its emphasis on technology shares that are under scan after latest Huawei saga.

Risk tone remained mostly unchanged as the global barometer of market sentiment 10-year treasury yields from the US remained to cling to 2.42% during the Asian session.

The economic calendar has lesser details to entertain momentum traders but global politics and comments from the FOMC members could offer intermediate trade opportunities going forward.

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