Asian Stock Market: ASX 200, NZX 50 bucks the uptrend amid reflation worries
|- Asian equities stay positive while taking clues from their US counterparts.
- RBNZ clamps down on property loans, inflation barometer firms.
- Australian data came in mixed, Aussie ambassador urges US for transatlantic deal.
Asian shares ignore the downbeat performance of their Pacific counterparts while keeping the latest gains during the early Tuesday. As a result, MSCI’s index of Asia-Pacific shares outside Japan rises 0.37% whereas Japan’s Nikkei 225 gains 0.14% by press time.
While increasing hopes of the US covid relief package worth $1.9 trillion joined recently upbeat trade headlines to favor the mood, Japan’s emergency stimulus and reflation fears in Pacific nations, mainly Australia and New Zealand, probe the bulls.
Read: Reflation trade poses a risk to emerging markets
Despite another economic push by Japanese Finance Minister Taro Aso, with the size of about 1.3 trillion yen, markets in Tokyo remained sluggish amid a light calendar at home.
On the other hand, the Reserve Bank of New Zealand’s (RBNZ) crackdown on the Loan-To-Value (LTV) ratio joins the upbeat RBNZ Inflation for the Q1 2021 to probe the equity bulls in the Pacific giant. Australian markets followed their neighbors even as trade optimism is likely to help Canberra. In doing so, the latest Aussie-China tussle may have gained the bears’ attention.
Elsewhere, oil refreshed multi-month high above $58.00 while S&P 500 Futures also tease the record top above 3,900 as US Democrats embrace the multi-billion stimulus despite Republicans’ dislike for the details.
Also favoring the sentiment could be the EU-UK readiness to resolve the trade tussle US aircraft subsidies as well as Britain’s trade optimism.
It’s worth mentioning that the fears of rising inflation push investors to rethink over further equity growth and hence bonds are up off-late. The same could be witnessed by the US dollar’s latest run-up while chasing the US 10-year Treasury yields to the north.
Looking forward, a light calendar can keep troubling momentum traders but market optimism is likely to stay. Cryptocurrencies have been in the spotlight off-late as the Bitcoin refreshes record top following Tesla’s investment into the BTC and hints of Apple’s likely jump into the session.
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