Asian stock market: Mildly bids as recovery hopes join receding tension in US
|- MSCI’s broad equity gauge refreshes three-month top above 630.00.
- Germany inches closer to open tourism, others in Europe will follow soon.
- US President Trump steps back from the previous threat to the protesters.
- A longer economic line, geopolitical/virus updates will offer a busy day ahead.
With Germany stepping up efforts to reopen the tourism sector, one of Europe’s main earning sources, the market’s optimism surrounding the economic restart gained momentum off-late. Also joining the league of positive news could be US President Donald Trump’s anticipated pullback from the previous threat to use harsh military power to tame the riots. Furthermore, hopes of additional stimulus from the European Central Bank (ECB) rekindled expectations that the rest of the major central banks will follow the suit, which in turn favored the Asian stock markets during the early Wednesday.
Against this backdrop, MSCI’s index of Asia-Pacific shares outside Japan rises over 1.50% to challenge the March month’s top while Japan’s NIKKEI also gains above 1.0% to 22,550 by the press time of the pre-European session.
Further, Australia’s ASX 200 pays a little heed to the Aussie Q1 GDP by rising 1.50% to 5,921. Moreover, New Zealand’s NZX 50 also benefited, up over 1.0% on a day, from upbeat data from the largest trading partner.
Stocks in China are mildly positive below 1.0% as the dragon nation’s fight with the West continues. However, equities from Hong Kong and India manage to gain around 1.5% by the time of writing amid calls of further stimulus.
Above all, the US 10-year Treasury yields extend late Tuesday's recovery moves to regain 0.70% mark whereas US stock futures also portray the overall trade optimism.
While news concerning the US-China tension, as well as riots in America, will keep entertaining the investors, the key PMI data from the UK, Europe and the US may add a burden on the analyst fraternity.
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