- Asian shares remain mildly bid even as concerns about US President Trump’s mount off-late.
- Stimulus hopes, RBA’s bearish bias and light calendar were additional catalysts for upbeat trading sentiment.
- US-Japan trade links praised, China criticized American ban on TikTok, WeChat.
- Aussie budget, comments from Fed/ECB leaders and Trump’s health updates will be important to watch.
Asian equities remain bid as market players cheer the return of US President Donald Trump from the hospital in the Walter Reed. Even so, traders are probed to not copy Monday’s heavy rise as the Republican leader gasped during the early-Asian video, which in turn raised doubts over his recovery. Also propelling the chatters over Trump’s health were the White House statements ordering people to wear PPE kit while nearing the President and 24-hour care for the national leader.
Elsewhere, US State Department praised the Washington-Tokyo trade ties and hopes to have a bright future under the fresh leadership in Japan. On the contrary, Beijing took a jab at the US ban on its famous application while terming it against the World Trade Organization (WTO) rules.
Further, the Reserve Bank of Australia (RBA) matched wide market expectations of offering no rate change while keeping the bond yield target unchanged. Moreover, upbeat prints of Indian PMIs and South Korea CPI Growth, coupled with the coronavirus (COVID-19) vaccine hopes, are additional catalysts for the market’s welcome scenario.
Amid all these plays, MSCI’s index of Asia-Pacific shares outside Japan gains 0.85%, near a two-week high, whereas Japan’s Nikkei 225 rises 0.40% by the press time of the pre-European session on Tuesday. China is off for the Golden Week while Australia’s ASX 200 adds 0.20% to its kitty. New Zealand’s NZX 50 part ways from its Aussie counterpart while flashing 0.80% gains.
Moving on, stocks from Indonesia jump over 1.0% and so do their Indian counterparts as we write. It should, however, be noted that the indices from South Korea and Hong Kong are last in the party. On a broader scale, S&P 500 Futures seesaw around three-week top flashed the previous day whereas the US 10-year Treasury yields add near one basis points to its previous run-up to 0.76%.
Given Australia’s budget in the pipeline, Asia-Pacific traders still have something to cheer before looking towards the European and the US catalysts. While the Aussie government is likely to keep their hands free to combat the COVID-19, comments from the ECB and the Fed, up for publishing during the day, may challenge the market sentiment. Furthermore, any additional downbeat developments from the White House will weigh on the market’s mood.