Asian stocks show mixed results as traders doubt global economic strength
Asian markets showed mixed results with most in red except China ahead of the European open on early Wednesday. Investors reassessed recent risk-on amid reports challenging global central banks’ future course of action. Though, chances of a trade deal with the US and additional monetary easing helped Chinese stocks perform better.
The 10-year US bond yields snapped back to 2.421% from 2.425% but still remain up from a 15-month low of 2.377%.
As per Reuters, MSCI’s broadest index of Asia-Pacific shares ex-Japan eased 0.1% whereas Japan’s lost nearly 0.6%.
Stocks in Australia were negative as Nomura cited economic weakness favoring two rate-cuts from the RBA in the current year. However, expectations of the US-China trade-deal and more supportive measures from the PBOC helped Chinese markets remain on the positive side. It should also be noted that the RBNZ favored rate cuts than the hike in its latest monetary policy meeting and triggered the New Zealand Dollar (NZD) slump.
The S&P 500 and Nasdaq closed in positive while European futures are struggling for directions. Markets in India were +0.5% whereas Korean shares were also in green around 0.1% but the Indonesian stocks were in red around 0.3%.
US delegates are to head Beijing for trade discussion on Thursday whereas second-tier trade balance data from the US are also up for release that can entertain short-term traders.
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.
