News

Asian Stock Market: RBA, China PMI follow US stimulus hopes to extend optimism

  • Asian stocks kick-start December on a positive note after heavy gains of November.
  • Fed Chair Powell, US Treasury Secretary Mnuchin backs the need for stimulus, Kaplan highlights economic fears.
  • RBA praises employment, inflation recovery during the status-quo, China Caixin Manufacturing PMI follows official activity data.

Having clocked the best November since 2001, MSCI’s index of Asia-Pacific shares outside Japan gains 1.0% during the early Tuesday. Positive trade sentiment could also be perceived from Japan’s Nikkei 225 and Australia’s ASX 200, up 1.5% and 1.3% respectively by press time.

While bulls liked the coronavirus (COVID-19) vaccine hopes and the expectations that the US policymakers are rushing towards the stimulus, RBA’s upbeat sentiment concerning the key indicators and China’s welcome activity data for November also favor the mood. In doing so, traders could ignore an uptick in Japan’s Unemployment Rate for October.

It should, however, be noted that the shares in New Zealand remain sluggish while those from China follow the market trend with over 1.0% gains by the time of writing. Further, South Korea’s KOSPI benefited from higher trade surplus and manufacturing PMI data at home whereas Indonesia’s IDX Composite keeps the head high as inflation data prints welcome marks for November. Elsewhere, India’s BSE Sensex struggles for traction, up 0.30% intraday, as politics at home chains the bulls.

It should be noted that S&P 500 Futures probe the record highs, marked the previous month, while the US 10-year Treasury yields stay mildly positive around 0.85%.

Wall Street had to close in small losses as the US dollar bounced off April 2018 low amid economic fears and month-end position adjustments. Though, Fed Chair Jerome Powell, US Treasury Secretary Steve Mnuchin and Dallas Federal Reserve Bank President Robert Kaplan mention odds of moderating economics to push for further stimulus.

Looking forward, Fed Chair Powell’s testimony and the early-month PMIs from the UK and the US, coupled with the European inflation numbers, can entertain global markets. However, risk-on is likely to stay for longer and may get an additional boost if US President-elect Joe Biden steps in for the stimulus and/or vaccine.

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.