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  • The MSCI’s Asia Pacific Index ex-Japan rises 0.2% while Japan’s NIKKEI adds 0.5%.
  • Hopes of further stimulus from leading economies, receding tension in Hong Kong please buyers.
  • Trade jitters, lack of fresh clues keep gains under check.

With the lack of fresh clues and uncertainty surrounding the US-China trade deal confronting expectations of easy money and slowing protests in Hong Kong, the Asian stocks register modest progress ahead of Tuesday’s European session.

While MSCI’s Asia Pacific Index outside Japan marks nearly 0.2% gains, Japan’s NIKKEI also remains 0.5% in the green amid the absence of risk-off momentum. Global bond yields retrace after surging overnight. The US 10-year treasury yield remains mostly unchanged at 1.594% by the time of writing.

Hopes of further stimulus gained momentum after Germany announced the use of fiscal measures. The anticipations grew after the US President Donald Trump supported 100 basis points (bps) of Fed rate cut, which was later on turned down by the Boston Fed’s President.

China’s HANG SENG seesaws between gains and losses as the central bank’s renewed loan rates are little changed from that of the previous pattern. Also to note is the dovish comments from the People’s Bank of China (PBOC) and it’s Vice Governor Liu He.

With this, Australian and New Zealand equity benchmarks, namely ASX 200 and NZX 50, are close to 1.0% wherein the minutes of the latest Reserve Bank of Australia (RBA) meeting offered additional strength to Aussie shares. Furthermore, Korea’s KOSPI is 1.0% plus but India’s SENSEX isn’t positively reacting to market sentiment as Kashmir issue got global attention.

While Tuesday is likely to be a dull day with less of data/events scheduled for publishing on the economic calendar, Wednesday’s Federal Open Market Committee (FOMC)  Minutes and the global central bank leaders’ appearance at the Jackson Hole Symposium, on Thursday, will be even crucial to follow.