Asian stocks: Chinese equities keep the bulls happy amid off at Japan
- Asian stocks benefit from the return of Chinese workers, liquidity infusion.
- Japan’s off, the market’s optimism surrounding the US-China trade deal also play their roles to portray the risk reset.
- US Fed Chair Powell’s testimony will be the key for the day.
With the gradual return of Chinese employees joining upbeat headlines from the Global Times, trade sentiment improves ahead of the European open on Tuesday. That said, MSCI’s index of Asia-Pacific shares (ex-Japan) mark 1.0% gains whereas headlines equity benchmarks from China also follow the suit.
Not only positive signals during the Chinese scientists’ research for coronavirus cure but Beijing’s commitment to the US-China phase-one deal also pleased the Asian share traders. Even so, the market moves seem mostly sluggish as bourses in Japan are off.
Also affecting the market’s cautious optimism could be the upcoming testimony from the US Federal Reserve (Fed) Chairman Jerome Powell. It’s worth mentioning that upbeat comments from the Fed policymakers helped Wall Street indices to post gains the previous day.
Shares in Australia rise 0.65% to 7,055 whereas those from New Zealand register 1.45% gains to 356.61 by the press time. Further, the US 10-year treasury yields also rise to 1.56% whereas the S&P 500 Future also remain 0.33% in the green at the time of writing. The reason could be traced from China as well as second-tier data at home.
In addition to the US Fed Chair’s testimony, comments from the ECB and the BOE leaders, coupled with the busy economic calendar, will be important to watch.
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