Asian Stock Market: Japan, China test recovery hopes amid downbeat session
|- Asian equities end May on a back foot amid long weekend in the US, UK.
- Japan’s Industrial Production, China PMIs came in mixed.
- Doubts over US stimulus, reflation fears and trade war headlines dim risk-on mood.
Asian shares trim monthly gains as indecision over manufacturing activities in Japan and China troubles the market bulls during Monday’s quiet session. Also on the risk-negative side were chatters suggesting fresh trade wars between China and the Western friend, also including Australia and New Zealand. Meanwhile, hopes of further stimulus from the US battle the fears of higher inflation pushing the Federal Reserve (Fed) towards tapering and probe the market bulls by the end of the upbeat month.
That said, MSCI’s index of Asia-Pacific shares outside Japan is up for snapping the three-month downtrend whereas Japan’s Nikkei 225 remains on the way for the third monthly drop, down 1.13% by the press time.
Moving on, Chinese stock follows MSCI’s broad gauge even as the official PMI figures raised doubts over economic consolidation. Australia’s ASX 200 remains mildly offered amid mixed clues concerning risk appetite and economics, not to forget the coronavirus outbreak in Victoria.
New Zealand’s NZX 50 jumps over 1.0% as RBNZ Assistant Governor Christian Hawkesby signals a continuation of easy money policies whereas shares in Taiwan were also on the same line following the news of $15.2 billion extra help from the government.
Further, stocks from South Korea, Indonesia and India were mildly bid as hopes of US stimulus bolsters after Republican Senator Shelley Moore Capito said, “Negotiations with U.S. President Joe Biden over a potentially massive infrastructure investment package are inching forward even though disagreements remain over the size and scope of such legislation.”
On a broader front, S&P 500 Futures struggle for clear direction, eases from intraday high of late, whereas bond market awaits European traders for fresh moves.
Moving on, a lack of major data/events can keep investors clueless and bored at the start of the week. However, market moves are likely to magnify going forward concerning the US jobs data week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.