Asian Stock Market: China tech rout, North Korea missile test probe bulls
|- Asian shares trade mixed as technology shares in China drop amid delisting fears.
- North Korea’s missile test also challenge the market optimism taking clues from AstraZeneca update, stimulus hopes.
- US GDP, central bankers’ comments will be the key.
Asian equities fail to track S&P 500 Futures to the north as headlines concerning Beijing’s technology stocks and North Korea weigh on the sentiment ahead of Thursday’s European session. In doing so, market-friendly news from AstraZeneca and hopes of further US stimulus fails to please investors from the region.
While portraying the mood, MSCI’s index of Asia–Pacific shares outside Japan drops 0.15% whereas Japan’s Nikkei 225 gains 0.75% by the press time. Further, Australia’s ASX 200 and New Zealand’s NZX 50 alternate gains with losses amid mixed clues from China and a lack of major catalysts at home.
Markets in China, Hong Kong, Indonesia and India are mildly offered as the US eyes tightening conditions for the foreign firms to stay on the American bourses. The same could oust some of the technology giants from Beijing and may escalate the Sino-American tussle.
It’s worth mentioning that the dragon nation has recently been suffering from equity sell-off and the same could be the reason behind the latest rumors suggesting China’s state funds directly buying from the market to help domestic companies.
Elsewhere, South Korea’s KOSPI ignores news claiming two missiles fired by its neighbor, i.e. North Korea. Though, the Asia-Pacific caution limits the index gains.
S&P 500 Futures snap a two-day losing streak as AstraZeneca unveils 76% efficacy over the covid variants and shrug off allegations concerning side-effects. Also positive for the market sentiment is the extension of the Paycheck Protection Program (PPP) beyond the March 31 expiry as well as hints over a $3.0 trillion infrastructure spending plan.
It should, however, be noted that the US 10-year Treasury yields bounce off a one-week low to rise for the first time in four days, around 1.63% by the time of writing.
Moving on, key central bankers from the UK, the US and Europe are up for speeches and can move the markets. Also important is the US Q4 GDP figures.
Read: The February Grab-Bag Preview: Personal Income, Spending, Core PCE Prices and GDP
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