- Asian shares cheer recovery in global activity numbers, hopes of a blue wave in the US elections.
- RBA announces rate cut, QE to combat the virus-led economic challenges.
- BlackRock upgrades Asian economic outlook, MSCI’s equity gauge inches closer to 2.5 years high.
Asian equities ignore the off in Japan to stay bid during the early Tuesday. Asia-pacific markets track Wall Street’s gains as the previous day’s upbeat performance of October month PMIs from leading economies like the US, Europe, China and Japan rekindle recovery hopes. In doing so, the risk barometers ignore political uncertainty in the US ahead of the key 2020 presidential elections. The reason could be traced from the recently increasing odds of a blue wave in both the American houses.
While portraying the trading sentiment, MSCI’s index of Asia-Pacific shares outside Japan rises 1.0% while nearing the previous month’s high, also the strongest levels in over two years. On the other hand, Japanese markets are off due to the Culture Day bank holiday.
Elsewhere, the Reserve Bank of Australia (RBA) matched wide market expectations of a 0.15 rate cut, to the benchmark Interest Rate and the 3-year yield target, with the Australian dollar 100 billion of the Quantitative Easing (QE) to the offering. This propels ASX 200 to print the strongest intraday rise in a month while probing the 6,100 level at the time of writing.
New Zealand’s NZX 50 also cheers the gains of ASX 200 by rising 0.70% intraday while Chinese equities couldn’t stay behind the bars amid expectations of a fresh start to the Sino-American relations if Biden enters the White House. Further, South Korea’s KOSPI ignores downbeat Consumer Price Index Growth data for October while Indonesia’s IDX Composite also follows the suit.
On a broader scale, S&P 500 Futures rise for the second day, currently up 0.50% above 3,300, while prices of oil and gold remain lose under 1.0% by press time.
Moving on, global traders are likely to keep the positive outlook ahead of the US elections, starting today. However, any surprise in the polls suggesting another term for President Donald Trump may spoil the mood.
Read: 2020 US Elections: Equities in three scenarios
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