Asian stocks trade mixed amid a lack of clear direction, risk-tone turns heavy

• MSCI’s Asia Pacific Index (ex-Japan) stays largely unchanged.
• Risk aversion rules amid the Japanese traders’ return.
• Dovish RBA minutes, upbeat China CPI and cautious Brexit optimism gain little market attention.

RBA’s firm support for further easy policy and China’s better than forecast inflation data, not to forget upbeat signals concerning the Brexit, could do little to boost investor sentiment as risk-tone remains heavy ahead of the European open on Tuesday.

The reasons could be China’s lack of readiness for a final trade deal with the United States (US) and the Japanese Prime Minister Shinzo Abe’s comments that the recent typhoon in Eastern Japan will have prolonged economic consequences. It could also be said that the present tension between the United States (US) and Turkey offer background music to the risk aversion wave. However, the Japanese equities cheered statements from the Bank of Japan (BOJ) Governor Haruhiko Kuroda’s comments supporting further easy money policies.

With this, the US 10-year Treasury yields turn negative to 1.68% while Gold holds on to recovery gains.

MSCI’s index of Asia Pacific shares ex-Japan stays largely unchanged at 629.30 but Japan’s NIKKEI welcomes the return of traders from extended weekend with more than 1.0% of gains. Further, HANG SENG follows MSCI index with little moves while India’s BSE SENSEX flashes nearly 0.50% gains. Moving on, Australi’s ASX 200 and New Zealand’s NZX 50 stay mostly positive with little momentum.

Looking forward, investors will keep an eye over the trade/Brexit headlines while the United Kingdom’s (UK) employment data, German Survey data and comments from the UK and the US monetary policymakers can entertain momentum traders.