Asian stocks track S&P 500 Futures to north, Nikkei 225 up over 2.0%
- Asian equities cheer increasing odds of $1.9 trillion stimulus from the US.
- Mixed news on vaccinations, US-Iran tension fail to disappoint bulls.
- Japanese Current Account, Trade Balance print welcome figures.
- Bank holiday in New Zealand, light calendar elsewhere restrict market moves.
Asian shares follow US stock futures and Treasury yields amid a lack of major data/events and mostly dead news feeds during early Monday. In doing so, the risk barometer cheers fresh updates over the US covid relief package as well as vaccinations while paying a little heed to the Washington-Tehran tussle and fewer signals at home.
As a result, MSCI’s index of Asia-Pacific shares outside Japan rises 0.71% whereas Japan’s Nikkei 225 leads the region’s uptrend with 2.10 gains while refreshing the highest levels since the early 1990s.
In addition to the latest comments from the US policymakers and Senate’s passage of the much-awaited American aid package, Japan’s better-than-expected Current Account and Trade Balance data offer extra help to the Japanese markets.
Australia’s ASX 200 follows the suit with 0.80% gains by press time despite China’s latest arrest of Australian TV anchor Cheng Lei on national security charge, per Bloomberg. It should be noted that the second coronavirus (COVID-19) case in Melbourne also threatens the mood in Canberra. Further, New Zealand’s NZX 50 is also among the same lot while ignoring bank holidays at home and rises 0.30% intraday.
Moving on, Chinese stocks remain bid, mostly up 1.0%, as the yuan rally fails to accompany signals of stop in the easy money policy.
It’s worth mentioning that the stocks in South Korea buck the trend with mild losses while those from Indonesia and India print small gains by press time.
US dollar index (DXY) stays heavy while extending Friday’s pullback from a two-month top whereas WTI refreshes the 13-month top as Iran hints proposal to increasing arms embargo if the US fails to recall the sanctions and settle the terms of the 2015 nuclear deal. Additionally, S&P 500 Futures rise to the fresh high of the month while following Friday’s notable rally in Wall Street.
Moving on, Asian dullness is likely to extend to the European and the US sessions. However, news relating to the American aid package, coronavirus (COVID-19) vaccines and the US-Iran tension could entertain market players.
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.
