Asian Stock Market: Shanghai soars ahead of key Chinese data, oil resumes upside

Markets in the Asian domain are showing mixed performance as Nikkei 225 has faced a sell-off while Chinese stocks are sky-rocketing ahead of respective economic events. S&P500 futures are showing some losses in the Asian session amid uncertainty over US President Joe Biden’s meeting with Republicans for US debt ceiling issues. However, US equities were on the seventh cloud on Friday after the release of a modest increment in Nonfarm Payrolls (NFP) data.

At the press time, Japan’s Nikkei225 dropped 0.68%, ChinaA50 jumped 0.90%, Hang Seng climbed 0.92%, and Nifty50 gained 0.74%.

An unimpressive US NFP report has strengthened the expression that the Federal Reserve (Fed) will keep the interest rate policy steady in its June monetary policy meeting.

Japanese stocks have faced selling pressure despite the upbeat market mood. Nikkei 225 has failed to ride along with broader strength amid the release of the Bank of Japan (BoJ) minutes of April’s monetary policy meeting. BoJ members supported the continuation of policy easing in order to achieve steady inflation. While discussing an exit from the ultra-dovish policy, BoJ members conveyed that the central bank should consider the weight of risk associated with the policy shift stance before consideration.

Meanwhile, Chinese stocks are showing strength ahead of Trade Balance and Consumer Price Index (CPI) data. Annual exports are expected to decline as Western nations are supporting the China+1 policy. Financial Times reported that the European Union is planning sanctions on Chinese firms for supporting Russia's war on Ukraine

On the oil front, oil prices are eyeing a fresh rally above the immediate resistance of $71.80 on hopes that the Federal Reserve (Fed) will also pause its policy-tightening spell to avoid further damage to US economic outlook.