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  • Asian traders cheer no end to the US-China trade deal following initially mixed signals.
  • Virus updates, trade negative headlines for Canada and the UK seem to gain a little attention.
  • EU attacks China over cyber-attack, Australia was the earlier victim.
  • Aussie, Japan PMIs flashed upbeat prints, activity data from US, EU and UK in the spotlight.

Asian equities print mild gains as the recent volatility recedes after US President Donald Trump confirmed that the Sino-American trade deal isn’t over. Even so, the US signals to levy tariffs on Canadian aluminum and the European Union’s (EU) allegation on China for the later cyber-attacks cap the risk-on momentum.

Global financial markets witnessed wild swings after White House Adviser Peter Navarro suggested that the trade deal with Beijing is over. Though, his follow-on rejection of the comment gained additional support from US President Trump and Adviser Larry Kudlow to restore the trading sentiment.

Elsewhere, the EU alleges China for the cyber-attacks on hospitals and health care institutions whereas America cited odds of levying punitive measures on Canadian aluminum. Furthermore, Japan gave a six-week ultimatum to the UK for post-Brexit trade deal negotiations.

It’s worth mentioning that the latest coronavirus (COVID-19) numbers from Beijing and South Korea suggest no clear direction while the preliminary activity data for Japan and Australia marked recoveries from the virus woes.

Against this backdrop, MSCI’s index of Asia-Pacific shares outside Japan prints 0.70% gains whereas Japan’s Nikkei 225 gains 0.91% to 22,642 ahead of the European open on Tuesday. Moving on, Australia’s ASX 200 also benefits from mild risk-on, up 0.10% to 5,950, but New Zealand’s NZX 50 struggles for a clear direction. Additionally, stocks in China and India flash below-0.50% gain figures though Hong Kong’s Hang Seng rises 1.15% to 24,790 as we write.

On a broader scale, the US stock futures portray the upbeat sentiment with 10-year Treasury yields taking rounds to 0.70%.

While most scheduled economics are out, for Asia, activity numbers for the Eurozone, Britain and America will be the keys to watch. Also likely to direct the near-term market moves will be the trade and virus updates.