Asian stocks: Doubts over oil recovery, coronavirus crisis weigh on markets


  • Asian equities remain under pressure amid the pre-NFP trading lull.
  • Washington extends lockdown, Wuhan Chief cites risk of coronavirus resurgence.
  • US President Trump repeated ‘hopes’ for an oil production cut.
  • ADB cuts China’s GDP forecast, Moody’s slash for Japan.

Asian stocks part ways from Thursday’s Wall Street close as risk-tone heavies during the early Friday. Fresh doubts over the US President Donald Trump’s claim of brokering an oil production deal as well as coronavirus woes keep the Asian share traders depressed amid the pre-NFP time.

Following Thursday’s comments from Russian spokesperson, US President Trump’s reiteration of the ‘hope’ that Saudi Arabia and Russia agreeing over 15 million barrels per day of output cut remain skeptical.

On the other hand, the coronavirus crisis renewed pressure on the risk-tone as Communist Party Secretary of China's Wuhan says the risk of coronavirus resurgence in the city is still high. Further, Washington extended the lockdown period.

Additionally, Asian Development Bank (ADB) slashes China’s 2020 GDP forecast to 2.3% versus 5.2% previous estimate whereas the global rating giant Moody’s expects Japan’s GDP to contract by 2.4% in 2020. Elsewhere, S&P affirms the US AA+ credit rating with a stable outlook.

Amid all this, the US 10-year treasury yields drop four basis points (bps) to 0.59% while MSCI’s index of Asia-Pacific shares outside Japan drops near 0.40% by the press time. Further, Japan’s NIKKEI recently bounced off the negative territory after  Liberal Democratic Party (LDP) said he has agreed with PM Shinzo Abe to offer 300,000 yen in cash payments per household that suffers a certain degree of income declines from coronavirus pandemic.

The economic calendar flashed higher than expected figures of China’s Caixin Services PMMI and Japan’s Jibun Bank Services PMI but failed to keep traders hopeful.

Market players now await March month's employment data from the US with ISM Non-Manufacturing surprising awaited more due to survey proximity with the US coronavirus outbreak.

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

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD retreats from 1.20 amid mixed US data

EUR/USD has retreated from its move toward 1.20 as US data is mixed. Building Permits and Housing Starts beat expectations but Consumer Sentiment missed with 86.5 points. Vaccine news is eyed.

EUR/USD News

GBP/USD battles 1.38 as US yields halt their falls

GBP/USD is trading around  1.38, off the highs as US Treasury yields are stabilizing after falling beforehand. US data is mixed. Sterling continues benefiting from Britain's vaccination campaign.

GBP/USD News

Stellar bulls on wrong side of uphill battle

XLM price has erected an ascending parallel channel on the 4-hour chart. A bounce from the setup’s lower trend line, although logical, seems unlikely. Stellar’s bear flag pattern on the 1-hour chart adds weight to the bearish outlook.

Read more

XAU/USD climbs to the highest level since Feb. 25, beyond $1,780

Gold gained strong follow-through traction for the second consecutive session on Friday. The USD struggled to capitalize on its attempted recovery and benefitted the commodity. Rebounding US bond yields, the risk-on mood did little to hinder the positive momentum.

Gold News

Gamestop waits for breakout signal, technical levels to watch

GameStop is struggling for relevance as COIN takes over! GME shares under pressure, down 6% on Thursday. GME is looking for a new CEO according to Reuters.

Read more

Forex MAJORS

Cryptocurrencies

Signatures