- Asian shares remain depressed as virus woes regain market attention, defy expectations of economic bounce.
- US marks record high daily cases, Japan’s daily covid numbers revisit early-pandemic era.
- Fed’s Powell, RBNZ’s Orr strike cautious statements amid a light calendar day.
Asian equities fail to part ways from their American counterparts as the coronavirus (COVID-19) dims economic recovery prospects. While figures from Japan’s rise to the early-2020 day with 1,600 being the latest readings, the US data flash 150,000 cases to mark the record daily increase. This also leads to speculations of a second national lockdown in the world’s largest economy after local lockdowns are gaining momentum.
Amid these catalysts, MSCI’s index of Asia-Pacific shares outside Japan dwindles to 0.07% intraday gains whereas Japan’s Nikkei 225 drops 1.0% while heading into Friday’s European session. Further, Australia’s ASX drops 0.40% after the recent US-China spat, not to forget Beijing’s trade-negative announcements for Canberra.
New Zealand’s NZX 50 bucks the trend as RBNZ Governor daunts market optimism while Chinese equities also bear the burden of global pessimism.
Stocks in Indonesia, South Korea and India stay on the backfoot as bulls get bored from vaccine hopes after Fed Chairman Powell signaled that vaccines aren’t the cure to the economic problems. Additionally, Wall Street and the US 10-year Treasury yields both pleased the bears. The mood good S&P 500 Futures down too.
As markets continue to be dicey amid a lack of major data/events, risk catalysts will be the key to watch for near-term trade directions. Among them, virus updates and the clues of the much-awaited stimulus from the US will be important to watch.
Also read: S&P 500 Futures entertain bears targeting 3,500 amid covid fears
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