Asian stock market: Trades mixed despite China’s extended rise

  • Asian equities dwindle as virus woes, Sino-American tension weigh optimism triggered through Chinese stocks.
  • RBA maintains status-quo, cites economies fears, NZIER Economist sounds cautiously optimistic.
  • Fed’s Bostic joins bears, EU-US trade tussle to intensify.
  • A light calendar keeps qualitative catalysts in the driver’s seat.

Asian shares fail to portray any clear direction of the market sentiment during the pre-European session on Tuesday. The reason could be traced from the traders’ trouble in comparing gains of Chinese equities to that of fears of the coronavirus (COVID-19) and the trade/political tussle between the world’s top two economies. Also challenging the risk-on mood could be the European Union’s (EU) trade warning to the US and the mixed signals from the Reserve Bank of Australia (RBA) and the New Zealand Institute of Economic Research (NZIER).

Stocks in China stretch Monday’s up-moves with over 2.0% gains amid hopes of further stimulus and the Global Times (GT) headlines suggesting Beijing-backed vaccine’s third trial in Brazil. Also supporting the move could be a zero virus number from the Chinese capital, the lowest since June 11.

On the contrary, pandemic data from Australia and the US continues to keep the policymakers worries. While identifying this, Fed’s Bostic and the RBA sound pessimistic in their recent appearances. Though, NZIER’s Chief Economist defies the calls of severe economic contraction in the second quarter (Q2). Furthermore, the US traders’ group push for more purchases from the dragon nation as a part of the phase 1 deal whereas the EU showed dislike for American threats to levy tariffs on the bloc’s goods. It should also be noted that Japans’ Tokyo marked above 100 virus figures to 106 for the fifth day in a row.

Against this backdrop, the MSCI index of Asia-Pacific shares outside Japan rises 0.20% but Japan’s Nikkei 25 drop 0.65% to 22,572 while writing. Australia’s ASX 200 and New Zealand’s NZX 50 follow the footsteps of Chinese equities with below 1.0% gains while stocks in Hong Kong and South Korea buck the trend. Additionally, India’s BSE Sensex and Indonesia’s IDX Composite remain mostly unchanged as struggling for a clear direction.

Talking about the US catalysts, the 10-year Treasury yields step back from the previous day’s rise to take rounds to 0.68% whereas S&P 500 Futures part ways from Wall Street’s upbeat performance.

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD extends gains as ADP NFP disappoints with only 167K

EUR/USD is trading above 1.1850, extending its gains after ADP's private-sector report badly misses expectations with an increase of only 167,000 jobs in July. The greenback had already been falling with yields.


XAU/USD bulls unstoppable, renews life-time highs near $2040

With ‘buy the dips’ emerging as the main underlying theme behind the gold price action so far this week, the bulls flex their muscles further to record fresh all-time highs near $2040.

Gold News

GBP/USD trades around to 1.31 amid dollar weakness

GBP/USD is trading around 1.31, recovering as the dollar retreats. The UK government is under scrutiny for its management of the virus crisis. Services PMIs on both sides of the Atlantic are eyed. The ADP NFP missed with 167K.


ETH/BTC on retreat, BTC recovery gains traction

ETH/BTC has topped at $0.03528 on Tuesday and retreated to $0.03448 by the time of writing. The cross has lost about 1% since the start of the day. The RSI on a daily chart reversed to the downside, signaling that the price is ready for a correction from overbought territory.

Read more

WTI hits fresh two-week highs near $42.50 ahead of EIA data

WTI (futures on Nymex) extends its winning-streak into the third straight day on Wednesday, as the bulls challenge the July high of $42.51.

Oil News