Asian Stock Market: Bulls cheer Biden transition, vaccine hopes despite China being spoiler

  • Asian shares outside China remain positive as US President-elect Joe Biden gets a formal nod to prepare for White House ruling.
  • Vaccine developments suggest sooner cure to the pandemic, soft Brexit on the radar.
  • RBA’s Debelle turns down negative rates, RBNZ’s Orr defies calls of a change in bank’s remit.
  • BOJ’s Kuroda suggest further easing, Aussie trade balance surplus recedes in October.

Asian equities, except China, benefit from US President-elect Biden’s transition approval as well as upbeat developments concerning the covid vaccines early Tuesday. While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan prints 0.10% intraday gains whereas Japan’s Nikkei 225 rises 2.8% while refreshing multi-year high.

Not only the fears that the Biden government won’t be different from the Trump administration for China but chatters concerning the American preparations to form a trade alliance with Western friends also weigh on the stocks from Beijing.

Elsewhere, central bankers from Australia, New Zealand and Japan flash mixed signals, mostly repeating what they’ve told earlier. In doing so, RBA’s Deputy Governor Guy Debelle turns down odds of a rate hike after the recently increased noise over no more rate cuts. This joins Australia’s upbeat Exports and Imports data for October to propel ASX 200 towards a fresh high since February, up 1.33% currently.

On the other hand, RBNZ Governor Adrian Orr poured cold water on the face of early hopes that the bank can consider housing price for remit, which in turn trims NZX 50’s initial gains while still flashing 1.08% intraday upside.

Further, BOJ Governor Haruhiko Kuroda and Executive Director Kimihiro Etoh both showed readiness to propel the easy money at home while Sankei mentioned the third stimulus to top 20 trillion yen.

Against this backdrop, S&P 500 Futures and the US 10-year Treasury yields also marked mild positives while shares in Indonesia, South Korea and India try matching the tunes of their regional neighbors, even with lesser upside momentum.

Although a lack of data/events can offer a sigh of relief to market plays, risk catalysts can keep the market players busy.

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