- Asian traders are cautiously optimistic about no war between the US and the Middle East.
- Fresh trade headlines, upbeat data and Wall Street performance also support the equities’ recovery.
Asian traders ignore war threats amid the absence of any major developments concerning the US-Iran tussle. The same, while joining with mixed US-China trade head headlines, help the MSCI index of Asia-Pacific shares to gain 0.60% to 692 by the press time of the pre-European session on Tuesday.
Market bears expecting an outbreak of the US-Iran war on Monday went home disappointed as the global leaders including France, Germany, the UK and United Nations (UN) are trying to placate Iran. Also, an absence of fresh war threat from the Middle East gives a little importance to the headlines showing that the US is preparing for fresh sanctions on Iraq as well as Trump administration’s banning of the Iranian Foreign Minister from entering the US.
Furthering the market’s risk reset could be trade headlines that suggest the US and China are on track as far as the phase-one deal is concerned. This joins the next week’s scheduled US visit by the Chinese diplomats while contrasting Beijing official’s claims that China will not change the purchase quotas of the farm goods’ import from the US.
Additionally, a positive daily performance by the Wall Street benchmarks also supports the equity buyers.
While portraying all this, the US 10-year treasury yields stay positive around 1.82% whereas Japan’s NIKKIE gains more than 1.37% to 23,523 by the press time. Further, leading stock indices from China and India are around 1.0% in gains whereas Australia’s ASX 200 benefits from the expectations of further easing after the recent wildfire and downbeat data.
Moving on, investors will closely observe developments surrounding the US-Middle East tussle for near-term direction whereas the US ISM Non-Manufacturing PMI could offer intermediate clues.
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