Asian stocks on recovery mode as investors reassess recession fears, bond yields rise

Asian stock markets were on recovery mode during early Tuesday as fears concerning the US recession seem to fade recently with the bond yields taking a U-turn from lows.

Shares in Japan were the biggest Asian gainers with Topix index rising nearly 2.0% by the press time. Reuters also reported a 0.3% gain of the MSCI’s broadest index of Asia-Pacific shares outside Japan against 1.4% previous loss.  

Australian shares remained mostly flat with a soft print of weekly ANZ/Roy consumer confidence survey confronting the Reserve Bank of Australia’s (RBA) Assistant Governor (Economic) Luci Ellis.

Stocks in India were up nearly 0.2% whereas the Shanghai Composite Index was down 1.0% as investors expect a further downgrade in earnings from the dragon nation.

Yields on the 10-year US treasury bonds recover from 2.377% to 2.425% as investors reassess speculations of the US economy declining back to 2007 like a recession.

Looking forward, investors may observe developments surrounding the US-China trade talks and comments from the Federal Reserve Bank of Chicago President Charles Evans in order to determine near-term trade bias. In the European session, German GfK consumer survey should gain market attention.