- Asian stocks register gains following Wall Street’s pullback from the sea of red.
- The broad US dollar retreat, as well as hopes of the massive stimulus, also helped extend the recovery moves.
- Japanese markets are off today, coronavirus keeps looming in the West.
Asian stocks manage to follow the footsteps of Wall Street amid mildly positive risk-tone while heading into Friday’s European session.
Wall Street benchmarks registered modest gains the previous day as markets weighed concerns of a huge stimulus from various government central banks.
Also supporting the moves could be the Fed’s announcement that it has established temporary USD swap lines with Australia, Brazil, Denmark, Korea, Mexico, Norway, New Zealand Singapore and Sweden. The news offered initial weakness to the US dollar during the early-Asia that gained strength on worrisome coronavirus (COVID-19) news from California and New York.
Additionally, expectations of further stimulus from the UK and the US, as well as receding virus numbers from China, also offered extra relief to the markets.
As a result, the US 10-year treasury yields recover above 1.15% whereas the MSCI’s Index of Asia Pacific shares outside Japan bucks the recent bearish trend. It should also be noted that markets in Japan are off due to the Vernal Equinox Day.
While most Asian stocks are posting mild gains by the time of writing Indonesia’s IDX keeps being the odd one due to the recent spike in the virus cases.
News of a remedy being tested in the UK and the US are making the rounds but nothing official have been announced, which if proved right could boost the recent risk reset.
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