Asian Stock Market: Consolidates recent gains amid China holidays, vaccine/stimulus optimism

  • Asian equities dribble as vaccine, stimulus optimism fades during a quiet day.
  • RBA’s Kent, Japan Trade numbers fail to entertain markets.
  • US President Biden, UK covid task force unveils jab planning, flaunts resources.
  • Japan to extend virus-led emergency, Australia also releases covid-related good news.

Shares in Asia-Pacific fizzle the latest uptrend as bulls get tired of the same old while China is still on the New Year holidays during early Wednesday. In doing so, market players ignore US President Joe Biden’s vaccine and stimulus optimism as well as welcome coronavirus (COVID-19) updates from the Pacific majors like Australia and New Zealand.

To portray the mood, MSCI’s index of Asia-Pacific shares outside Japan print 0.20% intraday gains while staying near the record top marked the previous day. On the other hand, Japan’s Nikkei 225 drops 0.50% as virus-led emergency gets another extension from Tokyo. In doing so, the Japanese investors ignore upbeat trade numbers and Machinery Orders for January and December respectively.

Elsewhere, Australia’s Victoria and New Zealand’s Auckland near the end of snap lockdowns as the governments prepare for vaccinations. While the move favors New Zealand’s NZX 50, Australia’s ASX 200 remains mildly offered despite the latest recovery moves.

On the same line, the UK’s immunization task force has conveyed the August-September timeline as the final by which all adults will have two jabs. Further, US President Joe Biden said to have the vaccines for all Americans by July while also teasing upcoming stimulus and the warning to China. Amid these plays, US 10-year Treasury yields ease from the one-year top while the S&P 500 Futures struggle for a clear direction near the record top registered Tuesday.

It’s worth mentioning that the shares in Hong Kong stay mildly bid but those from Indonesia, South Korea and India couldn’t ignore the US dollar’s recovery moves.

Looking forward, investors will keep their eyes on the US Retail Sales for January ahead of FOMC minutes for fresh impulse. Also important will be the updates over the US covid relief package and further easing for activity restrictions from Asia-Pacific.

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