Asian stocks ride multiple catalysts with upbeat mood

• Asian shares stay strong during a busy session.
• China PMI, RBA’s Lowe probe bulls but NZ jobs report, US stimulus hopes keep the tempo high.
• EU inflation, US data can entertain traders amid likely lackluster days ahead of Friday’s NFP.

Although multiple data/events slow down the bull-run, Asian equities remain positive during early Wednesday. The reason could be traced from US stimulus talks and upbeat global vaccination drive, as well as an absence of market frenzy.

While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan rises 0.25% whereas Japan’s Nikkei 225 adds 0.68% to 28,557 by press time. In doing so, the Japanese markets have an additional reason, provided by BOJ policymaker Wakatabe.

Further, Australia’s ASX 200 ignores downbeat comments from RBA Governor Philip Lowe while flashing 0.80% gains but New Zealand’s NZX 50 seems hesitant in justifying strong employment data at home. Chinese stocks were on the same line while printing mild gains despite downbeat Caixin Services PMI for January suggested an overall weakness in Beijing’s activity numbers after headlines figures weakened previously.

It should be noted that the US Democratic Party is pushing for a resolution that will enable them to pass the much-awaited stimulus without the Republican’s help. Also boosting the stimulus need were the comments from Treasury Secretary Janet Yellen. Vaccine approval in New Zealand and upbeat results of Russian cure to the pandemic add to the market optimism.

Not only Asia-Pacific shares but S&P 500 Futures and the US 10-year Treasury yields also portray market optimism while eyeing the European Union (EU) inflation figures and the US activity data, not to forget ADP employment change.

Given the lack of major data ahead of Friday’s US NFP, global markets are likely to follow US stimulus and virus/vaccine updates for fresh impulse.