Asian Stock Market: Trades mixed even as Japan’s Nikkei 225 drops over 2.0%
- Asian equities trade mixed, Japan bears the burden of virus woes.
- Markets in China benefit from PBOC inaction, ignore President Xi.
- Australia, New Zealand track Wall Street losses, US Treasury yields stay bid.
Shares in Asia fail to provide a clear direction on Tuesday amid mixed signals concerning the coronavirus (COVID-19) in the region and insignificant data/events at home. While portraying the mood, MSCI’s index of Asia-Pacific shares outside of Japan rises 0.42% but Japan’s Nikkei 225 drops 2.07% by the press time.
Possible recalling of the covid-led emergency measures in Tokyo and surrounding prefectures disappointed Japanese investors even as chatters swirl that the Bank of Japan (BOJ) may alter its inflation target to keep the monetary policy easy.
On the other hand, Chinese shares benefit from the People’s Bank of China’s (PBOC) inaction while ignoring downbeat comments from President Xi Jinping. Chinese President Xi not only raised doubts over the covid recovery but also indirectly warned the Western nations in his latest appearance on Tuesday.
Trades in Australia and New Zealand couldn’t ignore the downbeat performance of the US stocks as fears of further hardships for the technology shares join cautious sentiment during the busy earnings season to heavy the sentiment. It’s worth mentioning that RBA minutes reiterate employment fears as justifying the easy money policy and exert additional downside pressure on the Aussie markets.
Elsewhere, Indian bourses are mildly positive amid a pullback in new infections while Indonesian markets are in the same line ahead of the Bank Indonesia Rate Decision.
Although the US stock futures and the Treasury yields weighed on the US dollar, bulls aren’t convinced amid mixed trade and geopolitical signals. As a result, traders remain on toes ahead of the week’s key data/events, comprising the ECB and the BOC monetary policy meetings.
Also read: S&P 500 Futures regain upside momentum beyond 4,150 amid mixed clues
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.
