Asian Stock Market: Consolidates recent losses amid firmer Treasury yields


  • Asian equities recover amid a quiet session, receding fears of Fed’s tapering.
  • US-China trade story, covid headlines fail to entertain traders ahead of Powell’s testimony.

Asian shares remain on the front-foot amid early Tuesday as investors turn optimistic following the latest Fedspeak. Also favoring the market bulls could be firmer US Treasury yields and easing covid woes in Asia.

Amid these plays, MSCI’s index of Asia-Pacific shares outside Japan gains 0.18% intraday whereas Japan’s Nikkei 225 snaps a four-day downtrend, up 3.0% by the press time.

Australia’s ASX 200 gains 1.62% as downbeat prints of second-tier Aussie data defies challenges to the RBA’s easy money policies. It’s worth noting that a strong print of New Zealand’s Westpac Consumer Survey for Q2 2021 stops NZX 50 to follow the regional friends.

Chinese indices seesaw between gains and losses as Beijing’s ability to deliver trade deal promises risks fresh tensions despite Global Times’ terming the conditions as “make-or-break”. Elsewhere, South Korea’s KOSPI benefits from the upbeat Producer Price Index whereas Indonesia’s IDX follows the broad market conditions even as the Indonesian government battles the virus resurgence. Moving on, India’s BSE Sensex prints 0.80% intraday gains to refresh record top as officials fasten the jabbing.

On a broader front, S&P 500 Futures print mild gains following Wall Street gains while the US 10-year Treasury yields stay firmer after bouncing off a four-month low the previous day.

As global traders brace for Fed Chair Jerome Powell’s testimony to confirm no threats to the easy money policies, markets are likely to remain sluggish ahead of the event. Though, the cautious sentiment may help the US dollar stay mild bid but could risk further declines if Powell matches the upbeat forecasts.

Read: S&P 500 Futures: On defensive above 4,200 amid steady Treasury yields, Jerome Powell eyed

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.

EUR/USD News

GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.

GBP/USD News

XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more

Forex MAJORS

Cryptocurrencies

Signatures