Asian stocks markets: Nikkei 225, ASX 200 keep mild gains after drama over US-China trade deal
|- Asian traders cheer no end to the US-China trade deal following initially mixed signals.
- Virus updates, trade negative headlines for Canada and the UK seem to gain a little attention.
- EU attacks China over cyber-attack, Australia was the earlier victim.
- Aussie, Japan PMIs flashed upbeat prints, activity data from US, EU and UK in the spotlight.
Asian equities print mild gains as the recent volatility recedes after US President Donald Trump confirmed that the Sino-American trade deal isn’t over. Even so, the US signals to levy tariffs on Canadian aluminum and the European Union’s (EU) allegation on China for the later cyber-attacks cap the risk-on momentum.
Global financial markets witnessed wild swings after White House Adviser Peter Navarro suggested that the trade deal with Beijing is over. Though, his follow-on rejection of the comment gained additional support from US President Trump and Adviser Larry Kudlow to restore the trading sentiment.
Elsewhere, the EU alleges China for the cyber-attacks on hospitals and health care institutions whereas America cited odds of levying punitive measures on Canadian aluminum. Furthermore, Japan gave a six-week ultimatum to the UK for post-Brexit trade deal negotiations.
It’s worth mentioning that the latest coronavirus (COVID-19) numbers from Beijing and South Korea suggest no clear direction while the preliminary activity data for Japan and Australia marked recoveries from the virus woes.
Against this backdrop, MSCI’s index of Asia-Pacific shares outside Japan prints 0.70% gains whereas Japan’s Nikkei 225 gains 0.91% to 22,642 ahead of the European open on Tuesday. Moving on, Australia’s ASX 200 also benefits from mild risk-on, up 0.10% to 5,950, but New Zealand’s NZX 50 struggles for a clear direction. Additionally, stocks in China and India flash below-0.50% gain figures though Hong Kong’s Hang Seng rises 1.15% to 24,790 as we write.
On a broader scale, the US stock futures portray the upbeat sentiment with 10-year Treasury yields taking rounds to 0.70%.
While most scheduled economics are out, for Asia, activity numbers for the Eurozone, Britain and America will be the keys to watch. Also likely to direct the near-term market moves will be the trade and virus updates.
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.