- Asian traders await details of the US-China trade negotiations in September for fresh impulse.
- RBA helped recede ASX200 losses piled after downbeat Retail Sales.
- Hong Kong protests keep exerting pressure on HANG SENG.
Uncertainty surrounding the much-awaited trade talks between the US and China continues to hound the Asian stocks ahead of Europe open on Tuesday.
With the US tariffs on China landed without a break on month-start, investors fear a halt/delay in the expected trade negotiations between the two superpowers, which was previously anticipated to take place in the current month. However, no details of the same left the Asian traders disappointed with mixed reaction to various shares.
The MSCI index of Asia-Pacific shares outside Japan loses nearly 0.60% whereas Japan’s NIKKEI is on the run-up to 0.18% gain amid broader risk-on. The US 10-year treasury yields gain nearly two basis points (bps) to 1.5% while the US Dollar (USD) also strengthens ahead of the US traders’ return after extended weekend.
Chain’s HANG SENG also bears the burden of trade uncertainty, in additional to the protests in Hong Kong, with -0.10% loss while India’s BSE SENSEX drops heavily in a reaction to the government’s action to downsize the number of public sector banks (PSBs) and a fall in the August month vehicle sales.
Australia’s ASX200 initially declined on Aussie Retail Sales before recovering on a not-so-dovish monetary policy statement from the Reserve Bank of Australia (RBA). Further, New Zealand’s (NZ) NZX50 gains close to 1.5% as Finance Minister ruled out expectations of witnessing unconventional policy in NZ in the short-term.
Moving into the European session, traders will now keep an eye over the monthly activity data and trade headlines for fresh impulse whereas political drama at the UK will also steal the show.
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