Asian stocks wobble amid trade indecision, OPEC meeting

While calls of trade progress from the United States (US) diplomats keep the Asian shares on the positive side, gains are checked as global media keep mum about the same. An end of the Organization of the Petroleum Exporting Countries’ (OPEC) first day of meeting also flashed mixed signals. While global oil producers agree on a broad 500K output cut, the leader Saudi Arabia wants it to be confirmed by the non-OPEC members.

With this, MSCI’s index of Asia-Pacific shares seesaw around 0.30% in profits while Japan’s NIKKEI benefits from the government’s call of extensive stimulus while downbeat data favor further monetary policy easing. Additionally, China’s central bank, the People’s Bank of China, (PBOC), offered no change to the Medium-term Lending Facility (MLF) rate despite injecting injected 300 billion Chinese Yuan (CNY) in one-year operations. The same could be witnessed in Chinese indices that are mostly in green but a lack of clarity over the trade deal with the US cap the overall gains around 0.20-0.50%.

India’s BSE SENSEX raises doubts over the Reserve Bank of India’s (RBI) latest surprise pause while marking a 0.40% loss. Further, Hong Kong’s HANG SENG also follows the suit of Chinese shares with mild gains whereas Korea’s KOSPI seems to the biggest winner with nearly 1.0% gains.

Market’s risk tone also stays sluggish with the US 10-year treasury yields taking rounds to 1.80% and the S&P 500 Futures marking soft gains to 3,125.

Looking forward, traders will keep eyes on the US and Canadian employment data to foresee near-term market moves. It should also be noted that trade/political headlines could also offer intermediate moves.