- Asian equities fail to cheer US House passage of $484 billion stimulus package.
- Devastating activity numbers, failures to find the cure weigh on the trade sentiment.
- BOJ’s anticipated easing, comments from Japanese policymakers largely ignored.
With the PMIs across the globe showing how hard the world is hit due to the coronavirus (COVID-19), shares in Asia fail to benefit from the US House passage of $484 billion aid package. Also exerting downside pressure on the equities could be the lack of positive results from Gilead’s Remdesivir trials that initially triggered hopes of a cure to the pandemic.
That said, the US policymakers’ sustained allegations that China’s inability to report virus outbreak has been the key reason for the macro sufferings as well as Reuters poll for global growth offered additional burden onto the risk sentiment.
As a result, markets fail to follow oil recovery moves and upbeat comments from Japan, not to forget expectations that BOJ will remove the bond purchase limit during Monday’s meeting.
Also read: Forex Today: Economic contraction woes overshadow Oil rebound, eyes on German IFO
Given these catalysts offering mostly downbeat background music, the US 10-year Treasury yields and the US stock future registers losses by the press time, tracking the mood at Wall Street close.
Elsewhere, MSCI’s index of Asia-Pacific shares outside Japan registers 0.64% losses by the time of writing while Japan’s NIKKEI also flashes 1.11% losses to 19,186 ahead of the European session on Friday.
Stocks in Australian and New Zealand seem to buck the trend amid upbeat calls of easing the lockdown whereas those from Indonesia, South Korea and the Philippines stay in red due to the pandemic fears and worrisome data.
Additionally, Chinese shares remain on the back foot below 1.0% loss but Indian equities drop more amid virus outbreak being at the higher levels despite the government’s efforts to tame the epidemic.
Moving on, traders will keep eyes on the US data and virus updates for near-term direction while oil prices moves can offer additional impetus.
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