- Asian shares trade mixed, trim early-day gains, as virus woes attack bank rally.
- Fiscal stalemate in the US congress, Brexit and a light calendar add to the pessimism.
Having earlier cheered the run-up in bank stocks, Asian equities revisit the day’s low while heading into Friday’s European session. The reason could be spotted from the latest coronavirus (COVID-19) updates as well as fears of no American relief package before the presidential election. Furthermore, uncertainty over Brexit and downbeat news from COVID-19 vaccine producers also weigh on the risk tone.
That said, MSCI’s index of Asia-Pacific shares outside Japan dropped 0.10% whereas Japan’s Nikkei 225 mark 0.40% intraday losses to 23,400 by the time of the press. Further, Australia’s ASX 200 and New Zealand’s NZX 50 are losing around 0.50% and 0.80 respectively as we write.
While Nikkei couldn’t cheer the news government’s readiness to use an emergency budget for the stimulus, news that Japan doesn’t want to entertain the Trump administration’s anti-China policy also failed to please the Tokyo traders. On the other hand, China’s addition of Aussie cotton into the “No Australian things” list disappointed Antipodeans and dragged bears.
Elsewhere, US President Donald Trump, House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnel couldn’t convince market players that they’re working hard to offer the much-awaited COVID-19 stimulus. The presidential election candidate Joe Biden promised wider vaccine availability in the US but nobody cared for the “town hall”-styled question and answers.
Shares in Hong Kong gained 0.80 and so do their counterparts from India propelling BSE Sensex up by 0.40% to 39,885 by the time of the press. Alternatively, Indonesia’s IDX Composite and South Korea’s KOSPI are joining their Pacific friends with losses below 1.0%.
Also portraying the market mood is oil price weakness of around 1.0% as well as S&P 500 Futures’ mixed moves, currently up 0.10% to 3,478. Further, US 10-year Treasury yields remain sluggish around 0.73% while the US dollar index (DXY) bulls catch a breather after refreshing the monthly top the previous day.
Looking forward, Brexit updates from the EU summit and US aid package news can entertain traders while disappointment over the virus outbreak in Europe may continue to exert pressure on the risks. Talking about the data, US Retail Sales and Michigan Consumer Sentiment Index, for September and October respectively, will try to decorate the calendar.
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