Asian Stock Market: Fails to offer a warm welcome to Japanese traders

  • Asian shares trade mixed amid the US dollar’s sustained run-up and return of Tokyo’s traders.
  • BOJ’s Kuroda favors stabilization in markets, RBNZ stood pat on rates, LSAP.
  • Aussie Retail Sales slumped but the passage of US stopgap funding countered the bears.
  • September month PMIs are in focus amid serious concerns over virus wave 2.0.

Asian equities fail to track Wall Street gains as the US dollar’s run-up battles the coronavirus (COVID-19) concerns. As a result, the MSCI index of Asia-Pacific shares outside Japan fails to move much, down 0.05% now, while Japan’s Nikkei 225 flashes 0.40% losses during the pre-European open on Wednesday.

The US Congress passes the bill to avoid the October month shutdown but the latest COVID-19 cluster in Brooklyn fails to recall the bulls. Even so, stocks in Australia and New Zealand manage to rise notably amid separate catalysts. While Australia’s ASX 200 cheers upbeat prints of the Commonwealth Bank of Australia’s (CBA) PMIs, up over 2.0%, New Zealand’s NZX 50 takes clues from the Reserve Bank of New Zealand’s (RBNZ) inaction and registers 1.25% upside as we write.

Elsewhere, stocks in China fail to entertain traders with mild losses but Japanese traders react to the latest risk-off mood as they return from a four-day holiday. Furthermore, South Korea’s KOSPI and Indonesia’s IDX Composite follow the footsteps of Beijing’s shares. However, India’s BSE Sensex adds minor gains amid recently receding virus figures.

On Tuesday, Wall Street closed on the positive side technology shares propelled the run-up. Also helping the bulls were upbeat US data and nothing new from the Federal Reserve Chairman Jerome Powell during testimony.

That said, S&P 500 Futures stay mostly unchanged around 3,300 while the US 10-year Treasury yields stay mildly positive near 0.67% by the time of the press.

Looking forward, the initial estimation of September month Manufacturing and Services activities from Europe, the UK and the US will be the key to watch. Although no major good news is likely to arrive from scheduled PMIs, sustained recovery from the previous numbers, which is less likely, can keep the latest risk-on mood.

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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD edges above 1.18 amid mixed US data, slim stimulus hopes

EUR/USD is trading above 1.30 after US Durable Goods Orders beat expectations but Consumer Confidence missed estimates. Hopes for a US stimulus deal are slim with a week left until the elections.


GBP/USD stabilizes above 1.30 amid Brexit and covid uncertainty

GBP/USD is hovering above the round 1.30 levels as rising UK COVID-19 cases, uncertainty about Brexit, and PM Johnson's political problems weigh on sterling. US data has been mixed.


XAU/USD ticks up to $1,910 and turns positive on the day

Gold futures have found support right below the $1,900 area earlier today before inching up to $1,910, turning positive on daily charts. The precious metal lost ground, with the US dollar building up during the European session on Tuesday, to appreciate during the North American session with market sentiment improving moderately.

Gold News

Bitcoin breaks new yearly highs; the road to $15,000 is clear

Bitcoin breaks new yearly highs and hits $13,464. The road to $15,000 is clear as there are no major resistance levels above the current price.

Read more

WTI trims losses and moves near $39.00/bbl ahead of API

Following two consecutive daily pullbacks, prices of the West Texas Intermediate regain some buying interest and reach the $39.00 mark per barrel on turnaround Tuesday.

Oil News