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Asian Stock Market: ASX 200, Nikkei 225 gain over 1.0% despite China’s mixed data

  • Asian shares remain on the front foot, despite recent pullback, amid hopes of US stimulus, virus vaccine.
  • China marked weaker than forecast Q3 GDP growth, Industrial Production and Retail Sales improved in September.
  • Chatters surrounding China’s Ant Group, Brexit and Japan’s trade numbers were additional catalysts.
  • Speeches from ECB and Fed Chiefs will be the key.

Asia-Pacific equities surge on Monday while heading into the European session. The risk barometer benefited from the hints of breaking stimulus deadlock in the US as well as President Donald Trump’s signals of the coronavirus (COVID-19) vaccine. Further to propel the mood was Ant group’s ability to get Chinese approval for listing in Hong Kong as well as hopes of soft Brexit.

While cheering the mildly positive market mood, traders paid a little heed to China’s weaker than forecast Q3 GDP, as well as cheering upbeat figures of Industrial Production and Retail Sales. Furthermore, Japan’s downbeat Trade Balance also couldn’t disappoint the bulls.

As a result, MSCI’s index of Asia- Pacific shares outside Japan rises 0.50% intraday to probe April 2018 tops whereas Japan’s Nikkei 225 adds 1.15% to 23,680 by the time of the press. Further, Australia’s ASX 200 ignores China’s passage of a law to control exports but New Zealand’s NZX 50 fails to please the bulls even as Jacinda Ardern marked emphatic victory in the general elections.

Moving on, stocks in China remain mildly offered while Hong Kong’s Hang Seng rises 0.60%. South Korea’s KOSPI and Indonesia’s IDX Composite were among other soft gainers, mainly due to the COVID-19 woes at home. Though, India’s BSE Sensex rallies over 1.15% to 40,450 as easing virus numbers at home joins the broad market optimism.

Looking forward, speeches from ECB President Christine Lagarde and Fed Chair Jerome Powell will be closely observed after the recently bearish phenomenon of the global central bankers. Other than the monetary hints, traders will be more interested to search for clues on the need for fiscal relief for near-term direction.

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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