Asian Stock Market: Trades mixed as NZ, Indonesia probe cautious optimism

  • Asian equities print mild gains as hopes of US stimulus battle virus woes amid a light calendar.
  • US Senators amplify mood to break the stimulus gridlock, Australian regulator approves vaccine.
  • Covid variant infects New Zealand, pushes third lockdown in France, virus conditions worse in Indonesia and the UK.

Asian shares stay mildly bid, except for New Zealand and Indonesia, as global markets weigh US fiscal stimulus hopes and the coronavirus (COVID-19) woes. As result, MSCI’s index of Asia-Pacific shares outside Japan rises 1.0% while Japan’s Nikkei 225 adds over 0.40% gains during early Monday.

While brushing off the chatters over Democratic Party members’ lack of unity to support US President Joe Biden’s $1.9 trillion stimulus, incoming chairman of the US Senate Budget Committee, also a Vermont Senator, Barnie Sanders said, “Democrats will use reconciliation 'as soon as we possibly can' to pass Covid-19 relief package.” Also backing the moves could be the need for fiscal stimulus after recently mixed data from the world’s largest economy.

Alternatively, New Zealand’s first case of the covid variant in Northland weighed on the NZX 50, down 0.30% by press time, whereas France is likely to call third national lockdown as early as February amid virus woes. Further on the negative side could be a jump in the Indonesian infections of the COVID-19. As per the latest data from the Indonesian Health Ministry, cases rose by 11,788 whereas the death toll added 171 numbers and pushed authorities to take strict actions. Also challenging Indonesia’s IDX Composite, currently down over 1.0%, are the news that Indonesia recently seized oil tankers from Iran and Panama over ‘illegal’ fuel transfer issues.

It should be noted that Australia’s ASX 200 gains 0.21% as Aussie drug regulator approved the Pfizer/BioNTech vaccine for a phased rollout, planned for late February. Furthermore, chatters that Beijing authorities may allow Australian coal shipments to enter the country if they’re agreed before the ban in November, per Bloomberg, seems to have helped the risk as well.

On a different page, Chinese stocks were also following the market mood while those from India add 0.64% gains amid hopes of better growth following recently upbeat data and vaccinations.

Moving on, a lack of major data/events will keep markets gyrated near the record-high levels. However, headlines concerning the virus, lockdowns and US stimulus be the key to watch.

Read: S&P 500 Futures prints mild gains around 3,850 amid mixed clues during quiet session

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 falls toward 1.19 after robust US Nonfarm Payrolls data

EUR/USD is trading above 1.19 after dipping below that number in response to the US Nonfarm Payrolls, which showed an increase of 379K jobs in February. Higher yields in response to Powell are keeping the dollar bid.


GBP/USD recovers after post-NFP dip below 1.38

GBP/USD is trading above 1.38 bus till down the day. The US gained 379,000 jobs in February, roughly double than expected and supporting the dollar. The Senate's stimulus debate is eyed.


XAU/USD remains depressed near multi-month lows on stellar NFP

Gold edge lower during the early North American session and dropped to fresh nine-month lows, below the $1690 level in reaction to an upbeat US jobs report.

Gold News

Cardano ready to resume uptrend towards $2

Cardano price shows signs of a reversal after a 30% correction. The Tom DeMark Sequential indicator’s buy signal on the 4-hour and the 12-hour chart hints at a continuation of the bull rally.

Read more

US Dollar Index pushes higher to 92.20 on stellar Payrolls

The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).

US Dollar Index News