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.

AUD/USD remains depressed near 0.6950 after RBA minutes

AUD/USD attracts follow-through selling during Tuesday’s Asian session, looking to extend the overnight rejection slide from 0.7000, or a two-week top, following the release of RBA meeting Minutes. The US Dollar retains a bullish undertone near its highest level since April 2025 as energy-driven inflation risks keep December Fed rate hike bets firmly on the table. Adding to this, geopolitical risks further underpin the safe-haven USD.

USD/JPY extends retreat below 158.50 as intervention risks loom

USD/JPY is dropping below 158.50 in the Asian session on Tuesday, snapping a two-day winning streak and pulling back from an over two-week top touched the previous day, despite Japan's soft PPI inflation print. Bulls turn cautious amid speculation that authorities will step in to prop up the Japanese Yen, which, in turn, weighs on the pair.

Gold advances to $4,200 amid retreating USD; Fed hike bets to cap further gains

Gold builds on its modest intraday move up and hits a fresh daily high around the $4,200 neighborhood during the Asian session. The US Dollar retreats from its highest level since April 2025 amid some profit-taking, offering support to the commodity. However, the US Federal Reserve's hawkish stance and escalating Middle East conflicts could limit deeper losses for the safe-haven buck.

Cardano: Retail support wanes as ADA tests a make-or-break level

Cardano price is up nearly 2% at press time on Tuesday, holding above its 50-day Exponential Moving Average (EMA) at $0.2302 and a near-term rising support trendline at $0.2264. ADA is losing retail demand in the derivatives market as its futures Open Interest declines and funding rates flip negative.

Indian Rupee gains further on RBI’s fresh measures to lower US Dollar’s demand

The Indian Rupee extends the Monday’s advance against the US Dollar on Tuesday, driven by the announcement of fresh Reserve Bank of India’s US Dollar-related measures to shore up the domestic currency. In the opening session, the USD/INR pair tumbles 0.6% to near 95.00, the lowest level seen in over a month.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?