Asian stock market sentiment sours on comments from ‘five eyes’, virus woes

Asian equities trade mixed as China’s President Xi battles global ire on Hong Kong crackdown.
Tokyo near the highest alert, New York shutdowns schools.
Brexit jitters renew ahead of the EU summit, Aussie employment data fails to recall the bulls.

Anil Panchal FXStreet

Asian shares drift lower during the early Thursday as global traders struggle for clear directions amid mixed catalysts, mostly downbeat. The coronavirus (COVID-19) resurgence takes its toll in the major developed economies even as vaccine hopes try to keep the traders optimistic. Elsewhere, Chinese President Xi Xinping tries to placate global players with positive economic pledges amid major criticism of the Hong Kong crackdown.

Read: S&P 500 Futures wobble near one-week low amid fresh risk negatives

That said, MSCI’s index of Asia-Pacific shares prints mild gains while Japan’s Nikkei 225 drops 0.80% during the pre-European session trading on Thursday. Further, Australia’s ASX 200 trims early-day losses as upbeat jobs report for October battles lockdown measures in South Australia and other challenges to the risk.

Activity restrictions in Asia, Europe and Pacific nations/states are getting stronger following New York’s ban on personal visits to the schools. Against this backdrop, global vaccine players are rushing for the output whereas Pfizer recently marked a 95% effective rate. Though, the cure to the deadly virus is likely a bit far and hence challenges the risks.

The Five Eyes intelligence, including Australia, Britain, Canada, New Zealand and the US, “urged China to re-consider their actions against Hong Kong’s elected legislature and immediately reinstate the Legislative Council members,” as per Reuters. While trying to escape the criticism, the Chinese leader promises measures to strengthen economic and open borders. This leads to mixed trading by stocks in China and Hong Kong. However, figures from Indonesia await interest rate decision from the Bank Indonesia (BI), with mild gains, whereas South Korea’s KOSPI drops 0.50% amid fears of market intervention.

Not only the Asia-Pacific bourses but the US stock futures and 10-year Treasury yields also struggle with the risks and flash downbeat signals by press time. Hence, global traders eye fresh directions and may look forward to today’s EU summit for fresh impulse. In doing so, the importance of covid updates can’t be ruled out.

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.

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