Asian stocks pay little heed to Brexit doubts amid trade optimism

  • Asian shares stay mildly positive as headlines concerning trade/China please buyers.
  • Doubts over global economic growth, Brexit keep a tab on the upside.

With the trade-positive comments joining a hawkish action from the PBOC, not to forget about upbeat comments from Chinese state planner, Asian equity traders shrug off Brexit pessimism. Adding to the risk recovery is an absence of any major data/event during the week’s start.

The South China Morning Post (SCMP) recently came out with the upbeat comments from China’s Vice Premier Liu He as far as trade negotiations with the United States (US) are concerned. The same followed minor change to the People’s Bank of China’s (PBOC) rate decision and turning down talks of the dragon nation entering sharply into the recession.

As a result, markets largely ignored political limbo in the United Kingdom (UK) after the policymakers preferred Brexit extension during Saturday’s special session rather than debate/vote the Prime Minister (PM) Boris Johnson’s plan.

It should also be noted that downbeat comments from the incoming European Central Bank (ECB) President Christine Lagarde and direct threats to the US by North Korea’s Vice Minister failed to gain market attention.

Statistics suggest nearly close to 0.30% gain by the MSCI’s index of Asia Pacific shares ex-Japan with Japan’s NIKKEI following the suit with the nearly same percentage of profits. Further, HANG SENG rises 86 points to 26,806 while India’s BSE SENSEX adds 0.60% by the press time. Moving on, Australia’s ASX 200 and New Zealand’s NZX 50 register fewer moves whereas the US 10-year Treasury yields gain nearly one basis point to 1.76%.

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