- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.