Asia stock market: Alternates gains with losses amid stimulus hopes, virus woes
- Stocks in Asia trade mixed amid a light calendar and no decision over US aid package.
- Virus numbers suggest an unclear picture, Aussie PM sounds dovish but Japan’s Abe rules out immediate action.
- RBI to announce another rate cut, BOE may stand pat.
- Risk catalysts remain as the key, US jobless can entertain market as well.
Stocks in Asia remain lackluster amid fewer catalysts and persistent wait for the American aid package before the European session on Thursday. While portraying the inactive performance, MSCI’s index of Asia-Pacific shares outside Japan print 0.04% loss whereas Japan’s Nikkei 225 drops 0.50% to 22,396 as we write.
Australian shares defy the downbeat comments from Aussie PM Scott Morrison by rising 0.23% to 6,015. Also favoring the ASX strength could be a bit of softening in Victoria’s coronavirus (COVID-19) cases. Alternatively, a surge in Japan’s new virus cases beyond 1,100 overrules Prime Minister Shinzo Abe’s comments to turn down immediate action.
Further, New Zealand’s NZX 50 couldn’t cheer upbeat RBNZ Inflation Expectations for the third quarter (Q3) but South Korea’s KOSPI and India’s BSE Sensex are positive amid hopes of further government action. Additionally, stocks in China slip after Caixin Services PMI flashed weak prints and the People’s Bank of China (PBOC) adviser says no need to step-up monetary easing.
Elsewhere, the US 10-year Treasury yields stay sluggish around 0.54% while S&P 500 Futures track Wall Street’s gains.
Above all, US Senators keep flashing signals of agreement on unemployment claims benefits but no actual results have been delivered so far. US President Donald Trump has already said to use executive orders to rule out any more delays to the August vacation starting this weekend.
Given the lack of major data/events, traders will keep searching for the risk factors and may end-up hitting virus headlines, stimulus updates. Though, US Jobless Claims will also be the key to watch.