- Asian equity trades mixed near three-year high as economic worries jump back to challenge the previous optimism.
- Six-year low US Consumer Confidence derails upbeat mood backed by Sino-American trade deal, hopes of coronavirus cure.
- Cautious sentiment ahead of Jackson Hole Symposium also play its role, data from New Zealand, Japan flashed mixed results.
Asian shares stall the run-up near multi-month high as a lack of major data/events pushes traders to take clues from the previous day’s downbeat US statistics. Also challenging the risk-tone could be comments from American Secretary of State Mike Pompeo and the market’s wait to hear from global central bankers. Furthermore, crude’s run-up, mainly due to the fears of hurricane Laura, adds to the risk reset.
While portraying the same, the MSCI’s index of Asia-Pacific shares outside Japan drops 0.14%, after rising to highest since mid-2018 on Tuesday, during the early Wednesday. Japan’s Nikkei 225 is no exception while losing 0.10% to 23,290 by the press time.
Further, Australia’s ASX 200 contrasts New Zealand’s NZX 50 amid mixed coronavirus (COVID-19) updates and fading optimism concerning the Sino-American trade deal. Early in Asia, the US Secretary of State Pompeo said that President Trump holds China accountable for covering up the virus spread. The same could sour the mood after both the nations recently marked “constructive” trade talks. As a result, stocks in China drop near 1.0% while those from Hong Kong, Indonesian and India print mild losses as following the suit.
It’s worth mentioning that trade numbers from New Zealand join Japan’s Corporate Services Price Index and Leading Economic Index to print mixed outcomes and restrict market moves amid a dull day.
Not only Asian risk barometers but the US and European stock futures also print downbeat results while portraying the lack of direction. Even so, the US 10-year Treasury yields rise 3.1 basis points to regain 0.71% as we write.
Although the market moves are less likely to turn active ahead of the Jackson Hole Symposium, up for Thursday and Friday, trade/virus headlines may offer intermediate clues for the short-term traders. Additionally, the US Durable Goods Orders will also be observed closely after the previous day’s downbeat figures that renewed economic worries.
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