- Trade positive headlines concerning the US-China and the US-Japan ties please Asian traders.
- Doubts over the future of the US President, no solution to US-Iran tussle restrict the gains.
Not only the US President’s comments that the US and China are near to a trade deal but the trade-welcome statements from Japanese Prime Minister Shinzo Abe also fueled optimism into the Asian traders. However, increasing odds of the US President Donald Trump’s impeachment, coupled with Iran’s refrain to talk to the US and return to nuclear deal limit equities’ gains.
The cautious optimism led the MSCI’s index of Asia Pacific shared (ex-Japan) towards posting nearly 0.20% gains by the press time while Japan’s NIKKEI follows the suit by the time of writing. Further, India’s BSE SENSEX is more than 1.0% in green while China’s HANG SENG also marks around 0.2% of profits.
On the contrary, Australia’s ASX 200 and New Zealand’s NZX 50 might have emphasized more on the increasing odds of Chinese defaults and likely mixed monetary policy signals from the Reserve Bank of Australia (RBA) and Reserve Bank of New Zealand (RBNZ).
The risk tone remains a bit heavies with the US 10-year treasury yields down to 1.70% while oil prices bear the burden of likely improvement in supplies from Saudi Arabia and an absence of war-like situations between the US and Iran.
Moving on, central bank leaders from Europe and the UK will be observed for any clues concerning their future monetary policy actions before the Fedspeak begins during the later part of the day.
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