- Asian equities ignore Japan/New Zealand off amid modestly positive sentiment.
- US-China trade optimism, PBOC’s RRR cut and China’s manufacturing data keep the bulls happy.
- Month-start activity numbers can entertain traders amid thin market conditions.
Asian stocks begin the New Year on a positive side as an RRR from China and trade optimism please equity traders despite off at Japan/New Zealand. With this, the MSCI index of Asia-Pacific shares outside Japan mark nearly 0.55% gains by the press time of the pre-European session on Thursday.
In addition to the 50 basis points (bps) cut of the Reserve Requirement Ratio (RRR) by the People’s Bank of China (PBOC), a fifth Chinese Caixin Manufacturing PMI beyond 50.00 and nearness to the signing of a phase-one deal with the US also pleased the Asian share buyers.
Additionally, the latest comments from the US President Donald Trump and White House Adviser Peter Navarro also spread optimism surrounding the US-China trade relations.
With this, the US 10-year treasury yields stay on the upper side to 1.92% while S&P 500 Futures also mark gains of near 0.5%. Further, Chinese stocks gain more than 1.0% while Indonesia’s IDX Composite loses 0.4% amid worst flooding since 2013 in Jakarta and downbeat Indonesia Inflation. Moving on, India’s BSE SENSEX marks 0.42% profits whereas Australia’s ASX 200 seems to liquidate early-day gains while being 0.10% in the green.
Given the absence of Japanese traders and holiday mood elsewhere likely keeping the markets less active, investors may continue the recent upside in stocks with mild aggression unless any major negative erupts from trade/Brexit front.
On the economic calendar, month-start PMI numbers from the UK, Eurozone and the US will be in the spotlight for now.
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