Asian Stock Market: China leads corrective pullback even as US stocks futures drop

Asia-Pacific part ways from S&P 500 Futures, US 10-year Treasury yields.
China’s CSI 300 rises 1.0% to regain 5,000, NZX 50 and ASX 200 are gainers too.
US President Donald Trump obstructs stimulus but House Speaker Pelosi showed readiness to add more.
Aussie trade balance improves, BOJ Minutes favor easy money.

Anil Panchal FXStreet

Asian shares remain mildly bid despite mild risk-off in the West during the early Wednesday. US President Trump’s attempt to take a few more days before rolling out the much-awaited aid package weigh on the market sentiment off-late. The mood also gets support from Brexit uncertainty and coronavirus (COVID-19) infection in the UK.

On the positive side, Chinese stocks enjoy hints of further easing, backed by the World Bank’s comments. Also, upbeat data from Australia and BOJ minutes are extra positive for the mood in the Asia-Pacific region.

Australia’s preliminary reading of November’s Trade Balance eased from 7,456M previous readouts to 1958M but Imports grew 11% MoM against 6% prior. Further, Exports rose 1% versus 5.4% MoM prior. On the other hand, BOJ Minutes suggest, “the central bank's range of steps to ease corporate funding strains exerting intended effects.”

Elsewhere, EU-UK jostles over fishing rights while the level playing field is still an unsolved puzzle for Brexit watchers. Further, more parts of the UK are up for lockdowns starting December 26, per Telegraph.

Against this backdrop, MSCI’s index of Asia-Pacific shares, ex-Japan, rise 0.40% whereas Japan’s Nikkei 225 copies the move by press time. Further, Australia’s ASX 200 is up 0.85% whereas South Korea’s KOSPI, New Zealand’s NZX 50 and China’s CSI 300 gains around 1.0% by the time of writing.

Moving on, India’s BSE Sensex and Indonesia’s IDX Composite are also on the positive side as the regional move takes hints from US House Speaker Nancy Pelosi while ignoring Trump’s comments.

Looking forward, global traders will keep their eyes on the US stimulus and Brexit updates, not to forget the cover news, for fresh impulse ahead of the year-end holiday season.

Author

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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