- Asian equities remain positive for the second in a row, following Wall Street gains.
- Coronavirus numbers from the global hotspots trigger early hopes of recovery.
- Policymakers from the US, Japan and New Zealand signal more aid.
- RBA held monetary policy unchanged.
In addition to cheering the recent weakness in coronavirus (COVID-19) figures from the US, Italy, Spain and the UK, Asian stocks also take clues from the US, Japan and New Zealand’s policymakers to extend Monday’s recovery gains. In doing so, the MSCI’s index of Asia-Pacific shares outside Japan rises 1.5% whereas Japan’s NIKKEI gain 1.91% by the press time of the pre-Europe session on Tuesday.
As per Monday’s data from the global virus hot-spots, early signs of receding pandemic pleased the risk-takers during the first day of the week. Be it the fourth day of a slowdown in Spain’s pace of new deaths to 13,055 or the lowest in three weeks’ increase in Italy’s confirmed cases to 132,547, not to forget the UK’s third daily drop in the death toll by 439, everything turned investors cautiously optimistic.
During the early-Asian session on Tuesday, comments from the US House Speak Nancy Pelosi and President Donald Trump renewed hopes of another aid package. Further to the market’s optimism were comments from New Zealand and Japan that also indicated some more helps for the global traders amid the virus fears.
Even so, the RBA held its monetary policy unchanged and drowned Australia’s ASX 200 to buck the broad positive trend. While portraying the same, the US 10-year Treasury yields rise more than three basis points to regain 0.70% mark whereas US stock futures also mark near 1.0% gains by the time of writing.
It’s worth mentioning that the recently released German Industrial Production data also helped markets to remain positive.
Given the major attention to the coronavirus headlines, amid cautious optimism, news concerning the cure will provide an additional smile on the face of the bulls.
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