Asian stock market: Hopes of economic recovery fade amid a lack of major catalyst
- Asian equities trade mixed as risk-sentiment dwindles amid light news flow.
- Tension in Korea joins minor challenges from China, Aussie data flash mixed readings.
- All eyes on Thursday’s FOMC, UK-Japan trade talks.
Stock markets in Asia remain mildly bid, with small losses in some parts, as minor challenges to risks question traders amid an easy session before the European open on Tuesday.
North Korea issued a warning to cut communication ties with South Korea after finding the movement of unacceptable material through the border. China warned citizens to avoid unnecessary travel to Australia while citing increased racism in the Pacific nation. Further, armed forces entered Libyan oilfield and pushed to stop the production.
Meanwhile, the US Democrats are also rethinking over their previous proposal for a multi-trillion-dollar worth of aid package, per the Financial Times (FT).
It's worth mentioning that the Asian shares earlier cheered hopes of economic recovery, backed by the latest upbeat data from the US and China, as well as gradual reopening of the major economies.
Amid all these catalysts, the MSCI index of Asia-Pacific shares ex-Japan rises 0.50% but Japan’s Nikkei drop 0.75% to 23,008 by the press time. Further, stocks in China are mildly bid whereas those from India seem to cheer the gradual reopening of the economy after more than two months’ of lockdown.
Even so, South Korea’s KOSPI drops 0.65% to 2,170 whereas Australia’s ASX gains despite mixed figures from the National Australia Bank’s (NAB) Business Confidence and Business Conditions figures.
Elsewhere, the US 10-year treasury yields drop four basis points (bps) to 0.84% while the US stock futures also mark minor losses below 0.50% by the time of writing.
Although no major events are occupying the calendar, the UK-Japan trade talks and the market’s pre-Fed moves could direct short-term traders.