Asian stock market: Sluggish amid downbeat China data, Sino-American talks eyed

  • Shares in Asia dirft lower as China’s July month data dump disappoints.
  • Mixed headlines concerning from the US and China troubles traders ahead of Saturday’s talks.
  • RBA’s Lowe justifies easy money policy, virus figures from New Zealand rise.

Asian equities remain on the back foot during Friday’s pre-European trading. However, the moves were mild amid a lack of major surprises and cautious sentiment before the US and Chinese diplomat greet each other on Saturday. While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan decline 0.20% whereas Japan’s Nikkei 225 rises 0.08% by the press time.

Australia’s ASX 200 seems to buck the trend with near 0.50% gains to 6,123 as RBA Governor Philip Lowe keeps possibilities of negative rates on the cards. This also helps the NZX 50 to remain mildly positive, up 0.15% as we write, even as New Zealand’s coronavirus (COVID-19) total reaches to 48. Further, India’s BSE Sensex also follows the suit with mild gains amid hopes of overcoming the virus wave 1.0.

On the contrary, China’s weaker-than-expected Industrial Production and Retail Sales join US President Donald Trump’s “unfriendly attitude” to exert downside pressure on the dragon nation’s equity benchmarks. Hong Kong’s Hang Seng and Indonesia’s IDX are on the same line whereas South Korea’s KOSPI becomes the biggest loser so far while declining 1.28% to 2,406.

It should be noted that the US 10-year Treasury yields fail to extend the previous day’s upside near 0.71% but S&P 500 Futures gains 0.20% to 3,375. The reason for mixed performance concerning the US risk barometers could be traced from recently upbeat American data and uncertainty surrounding the much-awaited stimulus ahead of today’s US Retail Sales.

While a slightly populated calendar could offer intermediate trading moves, markets will wait for the clear direction on the COVID-19 relief package and US-China meet before regaining the momentum.

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