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.

Anil Panchal FXStreet

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.

AUD/USD consolidates above 0.7200 after hot Chinese CPI data

AUD/USD is extending its consolidative price action above 0.7200 during the Asian session on Wednesday, uninspired by hot Chinese CPI and PPI data. Meanwhile, rising RBA rate-hike bets act as a tailwind for the Aussie amid Yen-inspired US Dollar weakness. Traders await the release of US inflation figures later in the week for fresh impetus.

USD/JPY rises above 153.50 on renewed USD strength

USD/JPY shakes off the bearish pressure and trades above 153.50 in the American session on Wednesday. The US Dollar (USD) stages a rebound following the US Treasury buyback announcement and helps the pair gain traction. Nevertheless, solid Japanese data reinforce expectations that the BoJ will continue normalising monetary policy, lending further support to the Yen and capping the pair's upside for now.

Gold regains balance above $4,400

Gold rebounds on Wednesday, snapping a three-day losing streak and reclaiming the are beyond the key $4,400 mark per troy ounce. The precious metal’s bounce comes amid further selling pressure on the US Dollar and steady uncertainty on the geopolitical front.

XRP extends recovery as ETF inflows, futures interest stabilize

Ripple (XRP) ticks higher, trading at $1.42 on Wednesday while building on a recently confirmed support range between $1.30 and $1.35. The token also sits above major moving averages, reinforcing the bullish outlook. However, upside could remain capped unless the psychological barriers at $1.50 and $1.70 are cleared, paving the way for an extended recovery above $2.00.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.