- Asian shares cheer nearness to the US aid package, expectations of fresh start to the US-China ties.
- BOJ’s Sakurai sounds skeptic, Aussie Retail Sales recovered in September.
- South Korean PPI stays mixed the previous month, Hong Kong Q3 Jobless Rate surged to the highest in 16 years.
- Sino-Indian relations can improve on the latest gesture of the Delhi government.
Asian equities trade mostly positive as global markets cheers increasing hopes of the US coronavirus (COVID-19) stimulus. This contrast to the policymakers’ inability to match the Tuesday-night deadline as well as Senate Majority Leader Mitch McConnell’s refrain from respecting US President Donald Trump’s push for the early aid package.
Also read: S&P 500 Futures remain firm around mid-3,400s as US aid package talks intensify
That said, MSCI’s index of Asia-Pacific shares, ex-Japan, rises 0.46% intraday while Japan’s Nikkei 225 also prints near 0.50% gains amid expectations of further monetary easing from the BOJ.
Other than the chatters over the US relief package discussions, trading sentiment also improves on expectations that Joe Biden’s more likely victory will offer a fresh start to the Sino-American relations. Further, India’s returning of the Chinese soldier, who was lost a few days back, also eases the New Delhi-Beijing tensions and favor market optimists.
On the data front, Preliminary readings of Australian Retail Sales for September recovered from -4.0% to -1.5% whereas South Korea’s Producer Price Index (PPI) eased on MoM but bounced off -0.5% YoY in the previous month. Further, the South China Morning Post (SCMP) came out with the news conveying the highest unemployment in Hong Kong in 16 years during the last three months to September 2020.
Not only the equities but WTI and the US treasury yields also track Wall Street’s upbeat performance. However, stocks in China, Indonesia and New Zealand print mild losses to buck the trend. The moves could be traced to the respective currency gains.
Moving on, a light calendar in the US and no major data in Asia keeps US aid package negotiations in the spotlight.
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